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  • AUD/USD rose above 0.8000 for the first time since February 2008.
  • US Dollar Index stays deep in the negative territory below 90.00.
  • Eyes on key macroeconomic data releases from the US.

The AUD/USD pair closed in the positive territory on Wednesday and extended its rally to a fresh three-year high of 0.8008 during the European trading hours on Thursday. Although the pair seems to have gone into a consolidation phase, it’s still up 0.26% on the day at 0.7988.

Focus shifts to key US data

The broad-based selling pressure surrounding the USD provided a boost to AUD/USD on Thursday. Additionally, the AUD capitalized on risk flows as the ‘reflation trade’ remains the main market theme. At the moment, the US Dollar Index is trading at its lowest level in nearly eight weeks, losing 0.45% at 89.77.

However, the 10-year US Treasury bond yield is already rising nearly 5% on the day and the greenback could regather its strength if T-bond yields continue to push higher in the second half of the day.

Later in the session, the US Bureau of Economic Analysis will release its second estimate of the fourth-quarter GDP growth, which is expected to arrive at 4.1% on a yearly basis. Other data releases from the US will include January Durable Goods orders, weekly Initial Jobless Claims, and January Pending Home Sales.

Additionally, the Federal Reserve’s Vice Chair for Supervision Randal Quarles and New York Federal Reserve President John Williams will be delivering speeches later in the session.

On Friday, Private Sector Credit for January will be the only data featured in the Australian economic docket. 

Technical levels to watch for

 

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