AUD/USD climbs to fresh three-week highs above 0.7760 on renewed USD weakness
- AUD/USD gained traction ahead of the American session.
- US Dollar Index continues to push lower on Thursday.
- Consumer Inflation Expectations in Australia rose to 3.7% in February.
The AUD/USD pair broke out of its tight daily trading channel in the last hour and touched its highest level since January 21 at 0.7769. As of writing, the pair was up 0.58% on the day at 0.7765.
DXY starts edging higher ahead of US data
The renewed selling pressure surrounding the greenback seems to be fueling AUD/USD's upside ahead of the American session. The US Dollar Index, which closed the previous four trading days in the negative territory, is currently losing 0.17% on a daily basis at 90.27. Later in the session, the US Department of Labor's weekly Initial Jobless Claims data will be looked upon for fresh impetus.
In the absence of significant fundamental drivers, the risk-positive market environment seems to be making it difficult for the USD to attract investors. At the moment, the S&P 500 Futures are up 0.35%.
On Wednesday, FOMC Chairman Jerome Powell preserved its dovish tone by saying that the Fed remains committed to supporting the economy and made it difficult for the USD to find demand.
Meanwhile, the only data from Australia showed that Consumer Inflation Expectations in February rose to 3.7% from 3.4% in January but the market reaction was largely muted. There won't be any data releases featured in the Australian economic docket on Friday.
Technical levels to watch for