- The dollar falls across the board on Thursday amid risk appetite.
- The AUD/USD pair strengthens after the break of 0.6750 and cuts the weekly losses.
- Initial claims for US jobless benefits rise to 230,000 and continued claims hit new monthly all-time highs.
The broad decline in the US dollar boosted AUD/USD, which broke above 0.745. The pair hit three-day highs at 0.6769 after the US economic data and then eased back to 0.6755/60.
The dollar falls slightly, while the currencies related to commodities rise strongly. Gold, silver and crude oil rise. The DXY was down just 0.05% to 105.10. US Treasury yields are flat, marginally up.
In economic data, weekly US jobless claims rose as forecast to 230,000 in the week ending December 3, while continuing claims rose 62,000 to 1.671 million in the week ending December 26. November, above the market consensus of 1.575 million, reaching the highest level since the beginning of February. On Friday, China will report the Consumer Price Index for November, which is expected to show an increase of 1.5% (yoy).
Short-term positive outlook for AUD above 0.6750
The AUD/USD pair gained momentum after breaking through the 0.6740/50 zone, which capped gains during the previous two trading days. Above this level, the outlook is bullish for the Australian dollar in the very short term. The next resistance lies at 0.6780, followed by 0.6795.
A pullback below 0.6740 would weaken the pair, exposing the next support zone at 0.6710. Below that, the next level lies at 0.6680.
AUD/USD Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
