- AUD / USD rebounds during the US session on the general weakness of the USD.
- The US dollar index fell below 97.00 after the ECB’s announcements.
- The AiG Performance of Services index will be included in the Australian economic record.
AUD / USD spent the first half of the day sideways moving slightly below 0.6900 as the cautious market mood made it difficult for the AUD to maintain its strength. During the US session, however, the pair gained traction and reached a new daily high of 0.6957. At the time of writing, the pair was up 0.5% on the day at 0.6952.
DXY collapses under 97
Widespread selling pressure surrounding the greenback appears to allow the pair to push higher on Thursday. After remaining relatively calm around 97.50 for most of the day, the US dollar index (DXY) fell sharply and is now losing 0.5% to 96.85.
The strong surge in the EUR / USD pair following the monetary policy announcements from the European Central Bank seems to be the main reason for the weak dollar. The ECB has decided to expand its pandemic emergency purchasing program (PEPP) by € 600 billion and has reinforced the feeling of risk.
On the other hand, US data revealed that 1.87 million Americans had applied for unemployment benefits last week and that the trade deficit had widened to $ 49.4 billion in April. However, these figures have been largely overlooked by market players.
Friday, in the early hours of the Asian session, the Aig services performance index for May will appear in the Australian economic file.