• AUD/USD continues to push higher ahead of the weekend.
  • UoM Consumer Sentiment Index dropped to multi-year low of 70.2 in August.
  • US Dollar Index remains on the back foot, drops toward 92.50.

The AUD/USD pair extended its daily recovery during the American trading hours and touched a daily high of 0.7374. As of writing, the pair was up 0.52% on the day at 0.7372.

Falling US T-bond yields, dismal data hurt USD

The broad-based USD weakness seems to be helping AUD/USD push higher ahead of the weekend. The data from the US revealed on Friday that the University of Michigan's Consumer Sentiment Index slumped to its worst level in nearly a decade at 70.2 in August. This reading missed the market expectation of 81.2 by a wide margin and triggered a USD selloff. At the moment, the US Dollar Index is down 0.45% on a daily basis at 92.57.

Assessing the sentiment report, "there is little doubt that the pandemic's resurgence due to the Delta variant has been met with a mixture of reason and emotion," said Richard Curtin, Surveys of Consumers chief economist. "Consumers have correctly reasoned that the economy's performance will be diminished over the next several months."

In addition to the disappointing data, the sharp decline witnessed in the US Treasury bond yields is making it difficult for the USD to find demand. Currently, the benchmark 10-year US Treasury bond yield is losing 3.75% at 1.31%.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7371
Today Daily Change 0.0036
Today Daily Change % 0.49
Today daily open 0.7335
 
Trends
Daily SMA20 0.7367
Daily SMA50 0.7489
Daily SMA100 0.7605
Daily SMA200 0.7611
 
Levels
Previous Daily High 0.7378
Previous Daily Low 0.7331
Previous Weekly High 0.7427
Previous Weekly Low 0.7328
Previous Monthly High 0.7599
Previous Monthly Low 0.7288
Daily Fibonacci 38.2% 0.7349
Daily Fibonacci 61.8% 0.736
Daily Pivot Point S1 0.7318
Daily Pivot Point S2 0.7301
Daily Pivot Point S3 0.7271
Daily Pivot Point R1 0.7365
Daily Pivot Point R2 0.7395
Daily Pivot Point R3 0.7412

 

 

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