- AUD/USD is fluctuating in a very narrow band on Thursday.
- US Dollar ındex stays calm above 91.00 following Wednesday’s decline.
- Investors await Initial Jobless Claims and Existing Home Sales data from US.
The renewed selling pressure surrounding the greenback allowed the AUD/USD pair to gain traction and close in the positive territory on Wednesday. In the absence of significant fundamental drivers, the pair seems to have gone into a consolidation phase on Thursday and was last seen trading flat around 0.7750.
Eyes on mid-tier US data
The positive shift witnessed in market sentiment, as reflected by Wall Street’s main indexes’ strong gains, made it difficult for the USD to find demand and the US Dollar Index posted modest daily losses on Wednesday. At the moment, the DXY is down 0.05% on the day at 91.05.
Later in the session, the US Department of Labor’s weekly Initial Jobless Claims will be looked upon for fresh impetus. The Federal Reserve Bank of Chicago’s National Activity Index and Existing Home Sales data will be featured in the US economic docket as well. In the meantime, the S&P 500 Futures are down 0.1%, suggesting that risk flows could struggle to remain in control of financial markets in the second half of the day.
On the other hand, the data from Australia revealed that the National Australia Bank’s Business Confidence improved to 17 in the first quarter from 14. Although this print surpassed the market expectation of 7, it failed to trigger a noticeable market reaction.
Technical levels to watch for