Search ForexCrunch
  • AUD/USD remains on track to close the day little changed.
  • US Dollar Index stays in a consolidation phase below 91.00.
  • Focus shifts to Consumer Inflation Expectations data from Australia.

The AUD/USD pair dropped below 0.7700 during the European trading hours  but managed to stage a rebound in the second half of the day. After climbing to the 0.7750 area, however, the pair lost its momentum and turned flat on the day near 0.7720.

DXY pares daily losses

The USD came under modest pressure after Wall Street’s main indexes opened decisively higher following a three-day slide. The US Dollar Index (DXY) dropped to a daily low  of 90.58 in the early American and the risk-sensitive AUD capitalized on the upbeat market mood.  

The US Bureau of Labor Statistics announced on Wednesday that the Producer Price Index in April advanced to 6.2% from 4.2% in March. Additionally, the weekly Initial Jobless Claims declined to 473,000, compared to analysts’ estimate of 490,000.

Nevertheless, investors don’t seem to be hasty to continue to sell the USD after Wednesday’s inflation report, which showed that the Consumer Price Index (CPI) rose to 4.2% in April on a yearly basis from 2.6% in March. At the moment, the DXY is posting modest daily gains at 90.82.

There won’t be any other macroeconomic data releases from the US in the remainder of the day and the pair is likely to close the day little changed. On Friday, Consumer Inflation Expectations from Australia will be looked upon for fresh impetus before the US Retail Sales report.

Technical levels to watch for  

 

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.