AUD/USD clings to small daily gains near 0.6630 ahead of US data

• AUD/USD struggles to make a decisive move in either direction on Thursday.
• RBA’s Lowe says economic downturn might not be as severe as feared.
• Investors are waiting for key macroeconomic data releases from US.

The AUD/USD pair rose modestly during the Asian trading hours following some hawkish commentary from Reserve Bank of Australia (RBA) Governor Phillip Lowe.

However, the pair struggled to preserve its momentum in the absence of significant macroeconomic data releases and dropped below 0.6600. With markets turning quiet ahead of US data, AUD/USD recovered modestly and was last seen posting small daily gains near 0.6630.

Earlier in the day, RBA Governor Lowe said that it was possible that the economic downturn will not be as severe as feared. Regarding negative interest rates, Lowe said that he doesn’t think that they work and added that there was a limited appetite for them. 

USD remains calm ahead of US data

In the second half of the day, the US Bureau of Economic Analysis will release its second estimate for the first-quarter GDP growth, which is expected to remain unchanged at -4.8%. Other data from the US will include the weekly Initial Jobless Claims, Durable Goods Orders, Pending Home Sales and Kansas Fed Manufacturing Index. Ahead of these data releases, the US Dollar Index stays flat on the day near 99.00.

Meanwhile, investors will be keeping a close eye on fresh developments surrounding the US-China conflict over Hong Kong.

Technical levels to watch for