- AUD / USD falls for the fourth consecutive day on Thursday.
- The US dollar index climbs above 100.50 before the weekly jobless claims data.
- US Pres. Trump reiterates that they will not renegotiate the trade agreement with China.
AUD / USD came under further downward pressure during trading hours in Europe and fell to its lowest level in a week at 0.6410. At the time of writing, the pair was down 0.57% on a daily basis to 0.6418.
DXY peaks over several weeks
The general strength of the USD seems to weigh on the pair on Thursday. After U.S. President Donald Trump said having a strong dollar would help the U.S. economy after the coronavirus crisis, the American dollar The index (DXY) has risen sharply. Currently, the index is at its highest level in three weeks at 100.45, gaining 0.25% on the day.
Meanwhile, President Trump has reiterated that he will not renegotiate the trade deal with China. Trump further noted that they envision Chinese companies to follow U.S. accounting rules if they trade on U.S. exchanges. These comments put additional weight on the Chinese AUD proxy.
Later in the session, the US Department of Labor will release its weekly data on initial jobless claims. Meanwhile, the Australian Bureau of Statistics reported that the Unemployment rate rose to 6.2% in April from 5.2% in March. Although this reading is better than market expectations of 8.3%, it did not help AUD find demand.