AUD/USD steadies in lower half of weekly range around 0.7770
|- AUD/USD remains on track to finish the day in the negative territory.
- US Dollar Index posts small daily gains above 90.60.
- US PCE Price Index will be released on Friday.
The AUD/USD pair failed to hold above 0.7800 on Thursday and dropped to the 0.7770 area during the American trading hours. Currently, the pair is trading in the lower half of its relatively tight weekly range and was last seen losing 0.2% at 0.7772.
USD selloff loses steam amid rising T-bond yields
The USD's market valuation continues to drive AUD/USD's movements. On Wednesday, FOMC Chairman Jerome Powell's dovish tone despite the Federal Reserve's improved economic outlook weighed heavily on the greenback and forced the US Dollar Index to drop to its lowest level in two months at 90.42.
However, the sharp upsurge witnessed in the US Treasury bond yields on the back of upbeat data releases provided a boost to the USD. At the moment, the DXY is posting small daily gains at 90.64.
The US Bureau of Economic Analysis' first estimate showed on Thursday that the US economy grew at an annual rate of 6.4% in the first quarter, compared to analysts' expectation for an expansion of 6.1%. Additionally, the weekly Initial Jobless Claims declined to 553,000 from 566,000.
During the Asian session, Private Sector Credit data will be featured in the Australian economic docket. Later in the day, Personal Income, Personal Spending and the Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred gauge of inflation, from the US will be looked upon for fresh impetus.
Technical levels to watch for
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