- AUD/USD remains on track to close second straight day in the positive territory.
- US Dollar Index slumps below 91.00 during the American session.
- Focus shifts to April Nonfarm Payrolls data from US.
After falling toward 0.7700 during the Asian trading hours, the AUD/USD pair reversed its direction and moved into the positive territory in the second half of the day. As of writing, the pair was up 0.22% on a daily basis at 0.7764.
USD selloff picks up steam
Earlier in the day, the data published by the US Department of Labor revealed that the weekly Initial Jobless Claims declined by 92,000 to 498,000. This reading came in better than the market expectation of 540,000 but failed to trigger a significant market reaction with investors shifting their focus to Friday’s Nonfarm Payrolls (NFP) report.
Amid a lack of significant fundamental drivers, the greenback struggled to find demand and the US Dollar Index (DXY) dropped below 91.00 on Thursday, allowing AUD/USD to stay in the positive territory.
Although Wall Street’s main indexes trade near Wednesday’s closing levels to reflect a cautious market mood, the USD remains on the back foot. A modest decline seen in the benchmark 10-year US T-bond yield seems to be weighing on the currency. At the moment, the DXY is down 0.38% at 90.91.
During the Asian session on Friday, the Reserve Bank of Australia (RBA) will release its Monetary Policy Statement. The AiG Performance of Services Index will be featured in the Australian economic docket as well.
Technical levels to watch for
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