- AUD / USD came under renewed downward pressure at the end of the American session.
- The US dollar index extends the daily bounce to 91.50.
- The major Wall Street indices are trading deep in negative territory.
After fluctuating around 0.7750 during the first half of the day, the pair AUD/USD it came under renewed downward pressure in the last US session and hit a daily low of 0.7691. At time of writing, the pair was down 0.65% on the day at 0.7700.
USD capitalizes safe haven flows
Bitter market mood and general USD strength weigh on AUD / USD. According to various reports, the President of the United States, Biden, will unveil his spending plan for families and child care and propose to raise taxes on the rich to pay it.
Reflecting the negative impact of this headline on market sentiment, the major Wall Street indices fell sharply and the US Dollar Index (DXY) rose. At the moment, the S&P 500 Index is losing 0.7% on the day and the DXY is up 0.3% to 91.37.
Earlier in the day, data released by the US Department of Labor showed that initial weekly jobless claims dropped to 547,000 in the week ending April 17. Although this reading was better than the market expectation of 617,000, it did not provide a boost. risk the feeling.
On Friday, Commonwealth Bank’s preliminary services PMI and manufacturing PMI for April will be on the Australian economic docket. Later in the day, investors will pay close attention to IHS Markit’s manufacturing and services PMI figures for the US.
Technical levels
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