AUD/USD remains depressed around 0.7720 as focus shifts to US data
|- AUD/USD lost its traction in early European session.
- US Dollar Index posts modest gains above 90.00.
- Investors await Personal Income, Personal Spending and PCE inflation data from US.
The AUD/USD pair closed virtually unchanged on Thursday and came under renewed bearish pressure during the European trading hours on Friday. As of writing, the pair was trading at its lowest level since Monday at 0.7720, losing 0.25% on a daily basis.
Eyes on US data
The USD's market valuation continues to impact AUD/USD movements ahead of the weekend. Currently, the US Dollar Index is rising 0.14% on the day at 90.13. The modest increase seen in the benchmark 10-year US Treasury bond yield seems to be helping the USD find demand ahead of high-tier macroeconomic data releases.
The US Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) Price Index for April. Investors expect the Core PCE Price Index, the Fed's preferred gauge of inflation, to rise to 2.9% on a yearly basis from 1.8% in April. A strong PCE inflation reading could provide a boost to US T-bond yields and allow the USD to continue to outperform its rivals.
Meanwhile, S&P Futures are up 0.4% on the day. In case Wall Street's main indexes manage to open in the positive territory following the data releases, AUD/USD downside is likely to remain limited in the second half of the day.
Personal Spending, Personal Income and the University of Michigan's Consumer Sentiment Index data will be featured in the US economic docket as well.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.