AUD/USD struggles to stage a meaningful rebound, stays deep in red near 0.7020
- AUD/USD remains under bearish pressure in the American session.
- USD preserves its strength against its rivals on Thursday.
- AUD/USD looks to close fifth straight day in the negative territory.
After extending its slide during the Asian session on Thursday, the AUD/USD pair stayed in a consolidation phase near 0.7070 during European trading hours but lost its traction in the second half of the day. As of writing, the pair was trading a little above the two-month low it set at 0.7016, losing 0.75% on a daily basis.
DXY rally continues on Thursday
In the absence of significant macroeconomic data releases from Australia, the USD's market valuation remained the primary driver of AUD/USD's movements.
The US Dollar Index (DXY) rose more than 1% during the first half of the week and stretched higher on Thursday. At the moment, the DXY is up 0.23% on the day at 94.56.
Earlier in the day, the data from the US showed that weekly Initial Jobless Claims edged higher to 870,000 from 866,000 but was largely ignored by the market participants. Additionally, the US Census Bureau reported that New Home Sales in August rose by 4.8% and beat the market expectation for a decline of 1% by a wide margin.
Meanwhile, Wall Street's main indexes are trading little changed on the day, pointing out to a cautious market mood that makes it difficult for the risk-sensitive AUD to recover its losses.
On Friday, Durable Goods Orders from the US will be the last data of the week that could potentially impact the greenback's performance.
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.
