AUD/USD climbs above 0.6000 as USD selloff intensifies


  • US Dollar Index slumps below 100 on Thursday.
  • Initial Jobless Claims rose above 3 million in US.
  • Third estimate of the Q4 US GDP growth remained unchanged at 2.1%. 

The AUD/USD pair dropped to 0.5870 during the Asian session as risk-off, once again, started to dominate the financial markets. The broad-based selling pressure surrounding the greenback, however, allowed the pair to gain traction. As of writing, the pair was up 1.12% on the day at 0.6025.

DXY drops below 100

After erasing 0.8% on Wednesday, the US Dollar Index, which tracks the USD's value against a basket of six major currencies, extended its slide and was last seen down 1% on the day at 99.93.

The data published by the US Department of Labor on Thursday showed that the Initial Jobless Claims in the week ending March 21 surged to 3,283,000 from 282,000. Despite this reading, US stock index futures turned positive on the day to suggest that investors haven't read much into the data. Other data from the US revealed that the US Bureau of Economic Analysis' third estimate of the fourth-quarter GDP growth remained unchanged at 2.1% as expected.

Commenting on the data, “today's initial claims figure was at the upper end of the wide range of market expectations. In any case, it's absolutely shocking to see 2% of the US labour force making jobless claims in a single week,” said Josh Nye, a Senior Economist at the Royal Bank of Canada.

Earlier in the day, FOMC Chairman Powell reiterated that the Fed still had policy room for further action to put additional weight on the USD's shoulders.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6046
Today Daily Change 0.0087
Today Daily Change % 1.46
Today daily open 0.5959
 
Trends
Daily SMA20 0.6265
Daily SMA50 0.6544
Daily SMA100 0.6707
Daily SMA200 0.6779
 
Levels
Previous Daily High 0.6073
Previous Daily Low 0.593
Previous Weekly High 0.6307
Previous Weekly Low 0.5509
Previous Monthly High 0.6775
Previous Monthly Low 0.6434
Daily Fibonacci 38.2% 0.6019
Daily Fibonacci 61.8% 0.5985
Daily Pivot Point S1 0.5902
Daily Pivot Point S2 0.5845
Daily Pivot Point S3 0.5759
Daily Pivot Point R1 0.6044
Daily Pivot Point R2 0.613
Daily Pivot Point R3 0.6187

 

 

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