- AUD/USD continues to move sideways below 0.7600 on Thursday.
- US Dollar Index struggles to gain traction following Wednesday’s modest rebound.
- Focus shifts to key macroeconomic data releases from the US.
The AUD/USD pair closed the first three days of the week in the positive territory but seems to be having a difficult time extending its rebound on Thursday. As of writing, the pair was posting small daily gains at 0.7580.
In the absence of high-tier macroeconomic data releases from Australia, the USD’s market valuation remains the primary driver of AUD/USD’s action. After edging lower in the first half of the day on Wednesday, the US Dollar Index managed to gain traction in the American session and snapped a two-day losing streak, keeping AUD/USD’s upside limited.
Later in the day, the US Bureau of Economic Analysis (BEA) will release its final reading of the annualized first-quarter real GDP growth, which is expected to match the previous estimate of 6.4%. Other data releases from the US will include the weekly Initial Jobless Claims and May Durable Goods Orders.
Additionally, NY Fed President John Williams, Atlanta Fed President Raphael Bostic and St. Louis Fed President James Bullard are scheduled to deliver speeches during the American trading hours.
Ahead of these key events, the US Dollar Index is modestly lower on the day at 91.68. Meanwhile, S&P Futures are up 0.5% on the day, suggesting that risk flows could dominate the markets in the second half of the day and cause the USD to remain on the back foot.
