AUD/USD struggles to pull away from multi-year lows, trades around 0.6570
- US Dollar Index climbs above 99 following a three-day drop.
- China's Politburo says the economic recovery is accelerating.
- Coming up: New Home Sales from US and Private Capital Expenditures from Australia.
The AUD/USD pair failed to capitalize on the broad-based USD weakness earlier this week and extended its slide to its lowest level in more than ten years at 0.6561 on Wednesday. As of writing, the pair was trading at 0.6570, erasing 0.45% on a daily basis.
Although China's ruling Communist Party's Politburo on Wednesday said the economic recovery was accelerating, it acknowledged that the situation in the Hubei and Wuhan provinces were still dire and didn't allow the CHina-proxy AUD recover its losses.
USD recovery keeps bearish pressure intact
On the other hand, a technical rebound witnessed in the 10-year US Treasury bond yield helped the US Dollar Index (DXY) reverse its direction on Wednesday following a sharp drop that started last Friday and dragged it to its lowest level in two weeks at 98.88. At the moment, the DXY is up 0.17% on the day at 99.17.
Later in the session, New Home Sales data from the US will be looked upon for fresh impetus. During the early trading hours of the Asian session on Thursday, Private Capital Expenditures data from Australia will be published but investors are likely to continue to react to changes in the market sentiment and headlines surrounding the coronavirus outbreak.
Technical levels to watch for