Anna 
On Thursday, the Australian Dollar (AUD) continued its upward trajectory for the second consecutive day, buoyed by a weakening US Dollar (USD). However, the AUD faced some downward pressure due to mixed Australian employment data.
Supporting the AUD/USD pair, the Australian Dollar found traction as the ASX 200 Index continued its ascent. The domestic equity market, particularly buoyed by gains in mining stocks, benefited from firmer metal prices. Additionally, a report from Westpac highlighted the Reserve Bank of Australia’s (RBA) stance, indicating a reluctance to raise rates further without greater confidence in the inflation outlook, thus dampening speculation of imminent rate cuts.
Conversely, the US Dollar Index (DXY) experienced a decline, primarily influenced by subdued US Treasury yields. This downward correction in the US Dollar was further accentuated by renewed selling pressure and an overall risk-on sentiment prevailing in the market.
Investor focus remained on the release of weekly Initial Jobless Claims and Existing Home Sales later in the day. These data points carry significance as they offer insights into the state of the US economy and have the potential to influence the direction of the US Dollar in the near term.
