- AUD / USD remains on the defensive after Wednesday’s slide.
- The US Dollar Index remains in positive territory below 91.00.
- With an eye to initial jobless claims and US PPI data.
The pair AUD/USD he suffered his biggest loss in a day since late March on Wednesday and appears to be having a difficult time making a rebound on Thursday. At time of writing, the pair was trading at its lowest level since May 4 at 0.7695, shedding 0.35% on the day.
Focus shifts to mid-tier US data
The monthly report from the U.S. Bureau of Labor Statistics revealed on Wednesday that annual inflation, as measured by the Consumer Price Index, rose to 4.2% in April from 2.6% in March. This figure beat the market consensus of 3.6% by a wide margin and caused a rebound in US Treasury yields. As a result, the dollar began to outperform its rivals and the US dollar index rose by 0.67%.
On Thursday, the DXY records small daily gains around 90.80, which does not allow the AUD / USD to experience a rebound. In addition, the risk-averse market environment, reflected in more than 1% declines in major European stock indices, is helping the dollar stay strong against its main rivals.
Later in the session, the US Department of Labor will release its weekly data on initial jobless claims. In addition, market participants will closely follow the Producer Price Index (PPI) figures. Stronger-than-expected IPP figures and a sell-off in US equities could provide another boost to the USD in the second half of the day.
On Friday, data on consumer inflation expectations and new home sales from the EIS will be included on the Australian economic docket.
Technical levels
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