A stronger US dollar across the board pushed AUD/USD further to the downside. The pair broke below 0.7450 and fell to 0.7439, reaching the lowest level since January 12.
Short-lived recovery, back under pressure
Earlier today, the Aussie recovered ground and rose toward 0.7500. But after reaching 0.7490 lost strength and pulled back. After the beginning of the American session, the greenback started to rise with the US dollar index hitting the highest since Monday, despite a rising Treasuries. AUD/USD broke easily yesterday’s lows at 0.7450. Currently is trading at 0.7445/47, 25 pips under Wednesday’s close.
It is the fourth daily decline in a row. Price is consolidating under the key 0.7500 handle. That area capped the downside in March and also during the first week of April.
Key Data for AUD/USD
US economic reports today included a rise above expectations in initial jobless claims (257K vs 241K), March Durable Goods Orders rose 0.7% below the 1.2% expected and pending home sales dropped 0.8% (against expectations of a 1% decline).
On Friday, the key report in Australia will be the Producer Price Index (Q1) and private credit (March). In the US, the first estimate of first quarter GDP will be released. Analysts estimate that the economy rose at a 2% rate.