The Australian Dollar gains against the US Dollar as softer USD sentiment offsets better-than-expected US jobless claims.
AUD/USD climbed to near 0.6940 on Thursday, supported by a weaker US Dollar despite stronger US labor market data. US Initial Jobless Claims fell to 215K, below the expected 218K and the prior 217K, signaling limited layoffs and a stable jobs market.
The US Dollar Index (DXY) extended losses for a second session, reflecting broader USD weakness. Markets weighed geopolitical risks and the Federal Reserve’s policy outlook, while China’s economic data added mixed signals for the Aussie. China’s Producer Price Index rose 4.1% YoY in June, the fastest pace in four years, though consumer inflation slowed to 1% YoY.
Technical analysis shows AUD/USD hovering near the 100-period Simple Moving Average, with resistance at 0.6940-0.6946. The Relative Strength Index remains neutral, suggesting balanced short-term momentum.