- The AUD / USD failed to hold above 0.6600 on Wednesday.
- The sour market sentiment weighs on the risk-sensitive AUD on Thursday.
- The greenback remains relatively calm before the US data transfer.
AUD / USD hit its highest level since early March at 0.6618 on Wednesday before entering a consolidation phase. After falling to a daily low of 0.6549 on Thursday, the pair posted a modest recovery and was last seen at 0.6575, where it was still down 0.33% on a daily basis.
RBA Lowe Rejects Negative Rates
Thursday in a panel interview at FINSIA’s The Regulators webinar, Governor of the Reserve Bank of Australia (RBA), Phillip Lowe, said economic recovery should be very slow without a halt. medical breakthrough related to COVID-10. Regarding the political outlook, Lowe reiterated that the implementation of negative interest rates was still “extraordinarily unlikely” but did not help AUD find demand.
Meanwhile, the cautious market mood seems to make it difficult for AUD / USD to extend its rebound. For the moment, the S&P 500 futures are down 0.5%, suggesting that Wall Street should open the day in negative territory.
Meanwhile, the US dollar index remains unchanged today close to 99.15 before the main data released by the United States. In addition to the weekly initial jobless claims, PMI data on existing home sales and on manufacturing and services from Markit will highlight the economic calendar during the US session.
If the data provokes a new wave of security flight, the greenback may begin to strengthen as a safe haven and force the pair to push lower.