- AUD/USD is edging higher modestly ahead of key events on Thursday.
- US Dollar Index fluctuates in a tight range near 90.30.
- Eyes on US data, Fed speak and President-elect Biden’s stimulus plan.
The AUD/USD pair posted modest losses on Wednesday and started to edge higher ahead of key events on Thursday. As of writing, the pair was up 0.45% on a daily basis at 0.7767.
Focus shifts to Biden’s stimulus plan
The upbeat market during the European trading hours seems to be helping the risk-sensitive AUD find demand. Later in the session, the US Department of Labor’s weekly Initial Jobless Claims data will be looked upon for fresh impetus.
More importantly, Boston Federal Reserve President Eric Rosengren, Atlanta Federal Reserve President Raphael Bostic and FOMC Chairman Jerome Powell will be delivering speeches. Meanwhile, the US Dollar Index is little changed around 90.30 on the day.
Finally, President-elect Joe Biden is expected to announce the stimulus plan. Several news outlets reported on Thursday that Biden will unveil a $2 trillion package that will include additional direct payments to Americans as well as significant funds for state and local governments. During the Asian trading hours, the 10-year US Treasury bond yield shot higher on stimulus hopes and a similar reaction during Biden’s announcement could provide a boost to the greenback and cause AUD/USD to turn south.
On Friday, November Home Loans and Investment Lending for Homes data will be featured in the Australian economic docket.
Technical levels to watch for
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