AUD/USD drops to fresh weekly low of 0.6410
- AUD/USD falls for fourth straight day on Thursday.
- US Dollar Index climbs above 100.50 ahead of weekly Jobless Claims data.
- US Pres. Trump reiterates that they won't renegotiate China trade deal.
The AUD/USD pair came under renewed bearish pressure during the European trading hours and fell to its lowest level in a week at 0.6410. As of writing, the pair was down 0.57% on a daily basis at 0.6418.
DXY advances to multi-week highs
The broad-based USD strength seems to be weighing on the pair on Thursday. After US President Donald Trump said that having a strong dollar would help the US economy after the coronavirus crisis, the US Dollar Index (DXY) rose sharply. At the moment, the index is at its highest level in three weeks at 100.45, gaining 0.25% on the day.
Meanwhile, President Trump repeated that they will not renegotiate the trade deal with China. Trump further noted that they are looking at Chinese companies having to follow US accounting rules if they trade on stock exchanges in the US. These comments put additional weight on the China-proxy AUD.
Later in the session, the US Department of Labour will publish its weekly Initial Jobless Claims data. 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 came in better than the market expectation of 8.3%, it failed to help the AUD find demand.
Technical levels to watch for