AUD/USD erases early recovery gains, trades around 0.7420 ahead of US data


  • AUD/USD struggles to preserve its recovery momentum on Friday.
  • US Dollar Index rises toward 92.70 ahead of US data.
  • Wall Street's main indexes look to open modestly higher.

The AUD/USD pair lost more than 30 pips on Thursday and staged a modest rebound during the Asian trading hours on Friday. However, the pair seems to be having a difficult time preserving its bullish momentum and was last seen posting small daily losses at 0.7423.

In the absence of high-tier macroeconomic data releases, the USD's market valuation continues to impact AUD/USD's movements ahead of the weekend. Following Wednesday's sharp decline, the US Dollar Index (DXY) gained 0.2% on Thursday and continues to push higher on Friday, limiting AUD/USD's upside. At the moment, the DXY is rising 0.12% at 92.66.

Later in the session, the US Census Bureau will release the June Retail Sales data and the University of Michigan will publish the preliminary Consumer Sentiment Index for July.

Meanwhile, US stock index futures are trading modestly higher on Friday, suggesting that Wall Street's main indexes could open in the positive territory and provide support to AUD/USD.

AUD/USD near-term outlook

FX strategists at the UOB Group think that there is scope for AUD to drop below 0.7400 in the near term. 

"The bias still appears to be tilted to the downside but AUD has to close below 0.7400 before a sustained decline can be expected," analysts said. "There is no change in our view for now even though the prospect for AUD to move clearly below 0.7400 has increased. Looking ahead, the next major support below 0.7400 is at 0.7350."

AUD/USD: Extra losses below the 0.7400 level – UOB.

Additional levels to watch for

AUD/USD

Overview
Today last price 0.7424
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 0.7423
 
Trends
Daily SMA20 0.7507
Daily SMA50 0.7645
Daily SMA100 0.7676
Daily SMA200 0.7586
 
Levels
Previous Daily High 0.7489
Previous Daily Low 0.741
Previous Weekly High 0.7599
Previous Weekly Low 0.7409
Previous Monthly High 0.7794
Previous Monthly Low 0.7477
Daily Fibonacci 38.2% 0.744
Daily Fibonacci 61.8% 0.7459
Daily Pivot Point S1 0.7392
Daily Pivot Point S2 0.7361
Daily Pivot Point S3 0.7313
Daily Pivot Point R1 0.7472
Daily Pivot Point R2 0.752
Daily Pivot Point R3 0.7551

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains below 1.1750 on dismal German IFO, risk-off mood

EUR/USD is holding steady below 1.1750 after German IFO surprised to the downside. Hawkish Fed, Evergande risks amid stimulus hopes keep investors wary. The US dollar attempts a bounce amid a cautious mood, firmer Treasury yields. Powell’s speech awaited.

EUR/USD News

GBP/USD battles 1.3700 amid risk-aversion

GBP/USD is battling 1.3700, as the US dollar holds its bonce amid worsening market mood. The pound reverses hawkish BOE-led gains, as Brexit woes and China Evergrande uncertainty weigh. Focus shifts to Powell's speech. 

GBP/USD News

XAU/USD clings to gains above $1,750, upside seems limited

Gold gained some positive traction on the last trading day of the week and recovered a part of the overnight slump to the lowest level since August 11.

Gold News

Axie Infinity nears the end of bearish outlook as AXS contemplates 25% gains

A brief technical and on-chain analysis on Axie Infinity price. Here, FXStreet's analysts evaluate how AXS behaves as it trades above key support.

Read more

Who is Evergrande, and why are they important?

Evergrande Group (HKG: 3333) is China’s second-largest real estate developer, responsible for over 1,300 construction projects across mainland China. Alongside its many apartments and commercial buildings, Evergrande has also constructed an extremely precarious balance sheet since going public in 2009.

Read more

Forex MAJORS

Cryptocurrencies

Signatures