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  • AUD/USD is falling for the second straight day on Thursday.
  • USD preserves its strength as markets remain risk-averse.
  • Investors await weekly Jobless Claims and Q4 GDP data from US.

The AUD/USD pair closed in the negative territory on Wednesday and extended its slide to a fresh four-week low of 0.7592 on Thursday. As of writing, the pair was down 0.76% on the day at 0.7604.

DXY goes into consolidation  ahead of American session

The USD capitalized on safe-haven flows on Wednesday and the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, gained more than 0.5%. With the cautious market mood remaining intact, as reflected by heavy losses witnessed in major European equity indexes, the DXY clings to small daily gains around 90.70.

Later in the day, the US Bureau of Economic Analysis will release its advanced estimate for the fourth-quarter Gross Domestic Product (GDP) growth and the US Department of Labor will publish the weekly Initial Jobless Claims report. 

Previewing these data, “real GDP appears to have slowed, potentially to the point of contraction as the quarter ended but it was likely up moderately at least in Q4 as a whole,” said TD Securities analysts. “We expect claims to remain elevated at 860k for the week of 23 Jan (consensus: 875k). The weekly claims data can be especially volatile near year-end, reflecting big seasonal swings.”

Meanwhile, the S&P 500 Futures are trading flat on the day, suggesting that the USD could have a tough time gathering further strength if Wall Street’s main indexes stage a rebound on Thursday.

Technical levels to watch for