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The Australian dollar is down against the US dollar on Thursday.

The Greenback was stronger across the board, moving higher in response to the huge jump in oil prices that stands to benefit the US shale oil patch.

The Aussie dollar slid as survey data showed a collapse in business confidence that will be hard to recover once the spread of the coronavirus is under control.

AUD/USD was lower by 20 pips (-0.33%) to 0.6050 with a daily range of 0.6008 to 0.6120 as of 6pm GMT.

The currency pair failed again to surpass 0.61 on the topside but held comfortably above the key 0.60 psychological level for traders.

Australian dollar stabilises as Australia adds fiscal support

Domestic news in Australia was a little brighter for Australia with signs that the government containment methods have successfully “flattened the curve” of coronavirus spread. Morrison said on Thursday that the testing rate for the coronavirus was at 1% of the population, the first country to achieve that standard per capita.

Economic data was a little more disappointing in a sparse week. National Australia Bank’s business confidence survey for Q1 crashed to -11 from -2 at the previous reading.

Prime Minister Scott Morrison announced free childcare for critical workers including medical professionals and cleaners. Many childcare centres had shut as people were forced to work from home.

US dollar ignores claims data, rises with oil

The dollar was bid on Thursday but not as a haven since other risk assets were generally faring well.

The dollar gained on a tweet from US President Trump that he had spoken to Saudi Prince Mohammed Bin Salman (MBS) and Russian President Vladimir Putin and they had agreed to slash output by 10 million barrels per day, amounting to 10% of global supply.

If true, Trump might have saved the Shale oil industry from complete devastation. Shale oil companies are highly indebted and cannot make money while oil prices are so low.

The dollar was unperturbed by another weekly record for US jobless claims. First time claims for unemployment insurance in the United States surged to over 6.6 million in one week.


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