AUD/USD drops to fresh daily low below 0.7730 as USD continues to gather strength

  • AUD/USD stays under modest bearish pressure on Friday.
  • US Dollar Index climbs to fresh weekly tops above 90.30.
  • Eyes on the UoM's US Consumer Sentiment Index for June.

After spending the Asian session in a tight range around 0.7750, the AUD/USD pair gained traction and rose to a daily high of 0.7775. However, with the greenback regathering its strength ahead of the American session, the pair lost its traction and was last seen trading at a daily low of 0.7725, losing 0.35% on the day.

Supported by a more-than-1% gain seen in the benchmark 10-year US Treasury bond yield, the US Dollar Index (DXY) turned north and reached its highest level in a week at 90.37. As of writing, the DXY is up 0.3% at 90.32.

In the meantime, Wall Street's main indexes remain on track to open modestly higher with the S&P Futures and the Dow Futures rising 0.18% and 0.25%, respectively. In case risk flows start to dominate the markets in the second half of the day, the USD could have a tough time continue to outperform its rivals. The only data featured in the US economic docket will be the University of Michigan's preliminary Consumer Sentiment Index for June.

AUD/USD near-term outlook

"While shorter-term downward momentum has improved somewhat and AUD could dip below 0.7700, it has to close below 0.7680 before a sustained decline can be expected," said UOB Group FX Strategists. "The prospect for AUD to close below 0.7680 is not high but it would remain intact as long as AUD does not move above 0.7765."

Technical levels to watch for


Today last price 0.773
Today Daily Change -0.0024
Today Daily Change % -0.31
Today daily open 0.7754
Daily SMA20 0.7744
Daily SMA50 0.7733
Daily SMA100 0.7727
Daily SMA200 0.7544
Previous Daily High 0.7764
Previous Daily Low 0.7718
Previous Weekly High 0.7774
Previous Weekly Low 0.7644
Previous Monthly High 0.7892
Previous Monthly Low 0.7674
Daily Fibonacci 38.2% 0.7746
Daily Fibonacci 61.8% 0.7736
Daily Pivot Point S1 0.7727
Daily Pivot Point S2 0.7699
Daily Pivot Point S3 0.7681
Daily Pivot Point R1 0.7773
Daily Pivot Point R2 0.7791
Daily Pivot Point R3 0.7819



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