AUD/USD: Aussie Slips, U.S. Jobless Claims Next

 | Apr 07, 2016 08:37AM ET

The Australian dollar has posted considerable losses on Thursday, erasing the gains from the Wednesday session. AUD/USD is trading at 0.7550 in the European session. In economic news, the US will publish Unemployment Claims and Fed chair Janet Yellen speaks at an event in New York. In Australia, the AIG Construction Index dipped to 45.2 points, its fourth straight reading below the 50-level, indicative of ongoing contraction in the contraction industry.

RBA Governor Glenn Stevens weighed in on global currency developments this week, stating that a higher Australian dollar could hamper the economy’s recovery. Stevens hinted that the easing measures taken by other central banks had contributed to the Australian currency’s appreciation. The Aussie has surged 12 percent in the past two months against its US counterpart, to the consternation of the RBA. Will the central bank step in and raise rates next month? It’s certainly a possibility, and one key factor is the quarterly inflation report – if inflation softened in the first quarter, the RBA could feel compelled to take action and lower interest rates.

AUD/USD Fundamentals

Wednesday (April 6)

  • 19:30 Australian AIG Construction Index. Actual 45.2 points

Thursday (April 7)

  • 8:30 US Unemployment Claims. Estimate 271K
  • 10:30 US Natural Gas Storage. Estimate 7B
  • 15:00 US Consumer Credit. Estimate 15.0B
  • 17:30 US Fed Chair Janet Yellen Speaks

*All release times are DST

AUD/USD for Thursday, April 7, 2016