The AUD/USD pair has seen some significant movements in recent trading sessions. On Thursday, April 22, the pair hit a two-week low of 0.6678 during the European session. However, it quickly bounced back and rose above 0.6680. Later in the day, the pair climbed back above 0.6700 and continued to trim losses. This article will explore the recent movements in the AUD/USD pair and the factors that are influencing its price.
Factors Affecting the AUD/USD Pair
There are several factors that are influencing the price of the AUD/USD pair. One of the primary factors is the strength of the US dollar. The US dollar has been strengthening in recent months due to a number of factors, including the ongoing COVID-19 pandemic and the prospect of higher interest rates in the United States.
Another factor that is affecting the AUD/USD pair is the state of the Australian economy. Australia has been hit hard by the COVID-19 pandemic, and the country’s economy has been struggling to recover. This has put downward pressure on the Australian dollar, which has weakened against the US dollar.
Finally, the AUD/USD pair is also being affected by the overall state of the global economy. As the world economy continues to recover from the pandemic, there is likely to be increased demand for commodities, which will benefit the Australian economy. However, there are also concerns about the possibility of inflation and higher interest rates, which could put downward pressure on the AUD/USD pair.
Important US Economic Data
One of the key factors that could affect the AUD/USD pair in the coming days is the release of important US economic data. On Thursday, April 22, the US will release a number of important economic indicators, including jobless claims, PMI data, and existing home sales.
If these indicators show that the US economy is continuing to recover, this could put upward pressure on the US dollar and cause the AUD/USD pair to fall. On the other hand, if the data is weaker than expected, this could cause the US dollar to weaken and the AUD/USD pair to rise.
Conclusion
The AUD/USD pair has seen some significant movements in recent trading sessions, hitting a two-week low before bouncing back and climbing above 0.6700. The pair is being influenced by a number of factors, including the strength of the US dollar, the state of the Australian economy, and the overall state of the global economy.
In the coming days, the release of important US economic data could also affect the price of the AUD/USD pair. Traders and investors should pay close attention to these indicators and consider the various factors that are influencing the pair when making trading decisions.
