- US Dollar Index fell below the 99 mark on Thursday.
- Weekly jobless claims in the United States came in higher than expected.
- Investors are waiting for the Purchasing Managers’ Index (PMI) data from the United States.
The AUD/USD pair staged a modest recovery on Thursday after slumping to its lowest level in nearly a decade earlier this week at 0.6672. As of writing, the pair was trading at 0.6723, adding 0.3% on a daily basis.
USD struggles to shake off the selling pressure
The pair’s rebound seems to be fueled by a broad-based USD weakness rather than rising demand for the AUD. Resurfacing fears of a possible recession in the United States (US) after this week’s data showed that the business activity in the manufacturing sector in the United States contracted at a stronger pace in September than it did in August weighed on the Greenback and caused US Treasury bond yields to fall sharply. Since the beginning of the week, the 10-year US T-bond yield lost nearly 6%.
Ahead of the Institue for Supply Management’s and the Markit Economics’ Non-Manufacturing PMI data, the US Dollar Index is down 0.09% on the day at 98.93.
The US Bureau of Labor Statistics on Thursday reported that initial weekly jobless claims rose to 219,000 during the week ending September 27th and came in worse than the market expectation of 215,000.
On the other hand, the report published jointly by the Commonwealth Bank of Australia and the Markit Economics earlier on Thursday showed that the Composite PMI ticked up to 52 in Australia from 51.9 to help the Aussie stay resilient against its rivals.
Technical levels to watch for
Share
