Outlook Bearish After Breaking Support

The greenback rose alongside US yields on Thursday after positive ADP employment and services PMI data. AUD/USD dropped to lows of 0.7646 and held around these levels, closing at 0.7658. The pair last up 2 pips.

• On the coronavirus front Victoria reported four new cases of coronavirus in the past 24 hours. The lockdown has been extended to 14 days in total, meaning it will now end on June 10.
• From a technical perspective AUDU/SD broke through key support at 0.7675 Thursday, denting the outlook materially. As such, a bearish theme dominates and attention turns to 0.7635, Apr 14 low. A fall through here would strengthen the bearish case and signal scope for a deeper pullback towards 0.7586, the Apr 13 low. For bulls, clearance of 0.7813, May 18 high would be a bullish development and open 0.7891 instead, high May 10.
• Housing finance data headlines the local docket on Friday, due at 0230BST/1130AEST headline home loans are expected to have risen 5.4% M/M against a 5.5% rise in March.