AUD/USD rebounds to 0.7650 on renewed USD weakness
- AUD/USD stages a decisive recovery in early American session.
- US Dollar Index retreats to 90.50 area after US data.
- Wall Street's main indexes look to open higher.
After slumping to its lowest level in nearly a month at 0.7592 during the European trading hours on Thursday, the AUD/USD pair staged a U-turn in the early American session and erased a large portion of its daily losses. As of writing, the pair was still down 0.28% on the day at 0.7642.
Risk flows return after upbeat US data
A positive shift witnessed in market sentiment seems to be providing a boost to AUD/USD by weighing on the greenback.
The data published by the US Bureau of Economic Analysis showed on Thursday that the economic activity in the US expanded by 4% on a yearly basis in the fourth quarter as expected. Additionally, the Department of Labor reported that Initial Jobless Claims declined by 67,000 to 847,000 last week.
Finally, the US Census Bureau's monthly publication revealed that the trade deficit narrowed by $3 billion to $82.5 billion.
Reflecting the improving market sentiment, S&P 500 Futures gained traction and was last seen gaining 0.65%. Meanwhile, the US Dollar Index, which touched a daily high of 90.86, is posting small losses at 90.57.
Later in the session, New Home Sales data will be featured in the US economic docket. On Friday, Private Sector Credit and Producer Price Index data from Australia will be looked upon for fresh catalysts.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
