- AUD/USD rebounds during American session on broad USD weakness.
- US Dollar Index slumps below 97.00 after ECB announcements.
- AiG Performance of Services Index will be featured in Australian economic docket.
The AUD/USD pair spent the first half of the day moving sideways a little below the 0.6900 as the cautious market mood made it difficult for the AUD to preserve its strength. During the American session, however, the pair gained traction and rose to a fresh daily high of 0.6957. As of writing, the pair was up 0.5% on the day at 0.6952.
DXY slumps below 97
The broad-based selling pressure surrounding the greenback seems to be allowing the pair to push higher on Thursday. After staying relatively quiet around 97.50 for the majority of the day, the US Dollar Index (DXY) fell sharply and is now losing 0.5% at 96.85.
The sharp upsurge witnessed in the EUR/USD pair following the European Central Bank's monetary policy announcements seems to be the primary reason behind the USD weakness. The ECB decided to expand its Pandemic Emergency Purchase Programme (PEPP) by €600 billion and provided a boost to risk sentiment.
On the other hand, the data from the US revealed that 1.87 million American applied for unemployment benefits last week and the trade deficit widened to $49.4 billion in April. Nevertheless, these figures were largely ignored by the market participants.
In the early trading hours of the Asian session on Friday, the Aig's Performance of Services Index for May will be featured in the Australian Economic docket.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.