- AUD / USD is still on track to end the day in negative territory.
- The US dollar index records small daily gains above 90.60.
- The US PCE price index will be released on Friday.
The pair AUD/USD It failed to stay above 0.7800 on Thursday and fell to 0.7770 during US business hours. The pair is currently trading in the lower half of its relatively tight weekly range and was last seen shedding 0.2% to 0.7772.
USD sell-off loses steam amid rising Treasury yields
The market valuation of the USD continues to drive the movements of the AUD / USD. On Wednesday, FOMC Chairman Jerome Powell’s dovish tone, despite the improved economic outlook from the Federal Reserve, weighed heavily on the dollar and forced the US dollar index to fall to its lowest level in two months. at 90.42.
However, the strong rally seen in US Treasury yields following the release of upbeat data provided a boost to the USD. At the moment, the DXY posted small daily gains at 90.64.
The first estimate from the US Bureau of Economic Analysis on Thursday showed that the US economy grew at an annual rate of 6.4% in the first quarter, compared with analysts’ expectation of an expansion of the 6.1%. Additionally, weekly Initial Unemployment Claims decreased to 553,000 from 566,000.
During the Asian session, private sector credit data will be included in the Australian economic agenda. Later in the day, data from the Price Index for Personal Income, Personal Spending and Personal Consumption Spending (PCE), the Fed’s preferred inflation indicator, from the US will be considered for a new boost.
Technical levels
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