- AUD / USD is still on track to close the day with little change.
- The US dollar index remains in a consolidation phase below 91.00.
- Focus shifts to Australian consumer inflation expectations data.
The pair AUD/USD It fell below 0.7700 during European trading hours, but managed to rebound in the second half of the day. After climbing to the 0.7750 zone, however, the pair lost its momentum and turned flat on the day near 0.7720.
DXY cuts daily losses
The US dollar came under moderate pressure after the major Wall Street indices opened a decisive high after a three-day slide. The US dollar index (DXY) fell to a daily low of 90.58 on the first US dollar and the risk-sensitive AUD took advantage of market optimism.
The US Bureau of Labor Statistics announced Wednesday that the producer price index in April advanced to 6.2% from 4.2% in March. Additionally, initial weekly jobless claims fell to 473,000, compared to analysts’ estimate of 490,000.
However, investors do not appear to be in a rush to continue selling USD after Wednesday’s inflation report, which showed that the Consumer Price Index (CPI) rose to 4.2% in April on an annual basis from 2.6% in March. At the moment, the DXY is posting modest daily gains at 90.82.
There will be no further release of US macro data for the remainder of the day and the pair is likely to close the day little changed. On Friday, Australia’s consumer inflation expectations will be considered for further momentum ahead of the US retail sales report.
Technical levels
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