AUD/USD steadies near multi-month highs above 0.73
|- USD weakness lifts the pair on Friday.
- US Dollar Index looks snap 4-week winning streak.
The AUD/USD pair extended its rally that started on Tuesday and touched its highest level since late August at 0.7320 in the early NA session before going into a consolidation phase. As of writing, the pair was trading at 0.7310, adding 0.45% on a daily basis.
Earlier today, Fed Vice Chairman Clarida and Dallas Fed President Robert Kaplan both argued that the global economic slowdown could impact the U.S. economy negatively and the Fed needed to take the global outlook into consideration when deciding on policy. The US Dollar Index, which started the day a little above the 97 mark, lost its traction and fell to its lowest level in a week at after these remarks. At the moment, the index is down 0.58% on the day at 96.54 and remains on track to close the week in the negative territory after rising in the previous four weeks.
Additionally, a sharp fall seen in the US T-bond yields didn't allow the greenback to recover its losses against its rivals. As of writing, the 10-year T-bond yield was losing 0.83% on the day at 3.092%. Meanwhile, the only data from the U.S. on Friday showed that the industrial production rose 0.1% in October to come below the analysts' estimate of 0.1%.
Technical levels to consider
The pair could face the first resistance at 0.7360 (Aug. 28 high) ahead of 0.7440 (Aug. 7 high) and 0.7500 (psychological level). On the downside, supports are located at 0.7230 (100-DMA), 0.7200 (psychological level) and 0.7160 (50-DMA).
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