- Upbeat market mood helps weighs on USD in American session.
- US Dollar Index reverses course, drops toward 100.
- Market participants ignore disappointing PMI data from US.
Despite the disappointing macroeconomic data releases from the US on Thursday, the market sentiment turned positive and caused the greenback to come under renewed selling pressure. Boosted by the USD weakness, the AUD/USD pair extended its daily upside and touched a weekly high of 0.6405. As of writing, the pair was up 1.12% on the day at 0.6395.
USD weakens in American session
Heightened hopes of the EU leaders coming up with an economic recovery, surging crude oil prices and a Nikkei report suggesting that the Bank of Japan was looking to remove the bond-buying limit boosted risk-on flows. Reflecting the positive sentiment, Wall Street's main indexes are up between 1.35% and 1.7% on Thursday. On the other hand, the US Dollar Index is down 0.26% on the day at 100.08.
Earlier in the day, the weekly data published by the US Department of Labor showed that weekly Initial Jobless Claims were at 4.4 million in the week ending April 18th. Moreover, the IHS Markit's Manufacturing PMI slumped to 36.9 from 48.5 and the Services PMI dropped to 27 from 39.8.
There won't be any significant macroeconomic data releases in the remainder of the day and the risk perception is likely to continue to impact the pair's movements.
Technical levels to watch for
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