AUD/USD retreats modestly from multi-week highs, clings to gains around 0.7370
|- AUD/USD rose to its highest level since early September at 0.7387.
- US Dollar Index stays calm near 92.00 on Friday.
- Wall Street looks to open modestly higher on shortened trading day.
The AUD/USD pair advanced to its highest level in 12 weeks at 0.7387 on Friday but struggled to preserve its bullish momentum ahead of the American session. As of writing, the pair was up 0.15% on the day at 0.7370.
AUD capitalizes on risk appetite
In the absence of significant macroeconomic data releases, the market's risk perception remained the primary driver of major currencies. Supported by the upbeat market mood, as reflected by gains witnessed in major Asian equity indexes, the AUD gathered strength against its rivals.
However, renewed concerns over the UK and the EU failing to reach a trade deal seems to be causing investors to turn cautious during the European trading hours. The sharp decline seen in the GBP/USD pair after British Prime Minister Boris Johnson sounded pessimistic about the prospects of a deal helped the greenback stay resilient against its rivals. As of writing, the US Dollar Index was virtually unchanged on the day at 91.99.
In the meantime, the S&P 500 Futures are up 0.2% on the day, suggesting Wall Street's main indexes could start the holiday-shortened trading day in the positive territory. If risk flows remain in control of the markets in the second half of the day, AUD/USD could close the second straight week in the green.
Technical levels to watch for
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