Australian Dollar appreciates as the ASX 200 Index continues to gain ground on Thursday.
Australia’s Employment Change came in at -6.6K and the Unemployment Rate increased by 3.8% in March.
US President Joe Biden calls for tripling the existing 7.5% tariff rate on Chinese steel and aluminum.
The decline in the US Treasury yields contributes to pressure to undermine the US Dollar.
The Australian Dollar (AUD) continues to gain ground on the second consecutive day on Thursday. The decline in the US Dollar (USD) contributes support for the AUD/USD pair. However, the mixed Australian employment data appears to exert downward pressure on the AUD.
The Australian Dollar gains momentum as the ASX 200 Index continues to climb on Thursday. The domestic equity market is bolstered by gains in mining stocks, supported by firmer metals prices. This positive momentum persists despite US stocks extending losses overnight amidst concerns that the Federal Reserve (Fed) may delay rate cuts further into the future.
The US Dollar Index (DXY) loses ground. primarily influenced by subdued US Treasury yields. This correction in the US Dollar is further reinforced by renewed selling pressure and an overall risk-on sentiment in the market. Investors watch for the release of weekly Initial Jobless Claims and Existing Home Sales later on Thursday, which could provide further insight into the state of the US economy and potentially impact the direction of the US Dollar.
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