AUD/USD fluctuates in tight range below 0.69, loses around 100 pips for the week
- US Dollar Index stays in the positive territory below 98.
- U.S.-China trade dispute continues to weigh on antipodeans.
After closing every day of the week in the negative territory, the AUD/USD pair extended its slide into the fifth day on Friday and touched its lowest level since January 2 flash-crash at 0.6872. With the lack of significant macroeconomic data releases causing the trading action to stay subdued in the second half of the day, the pair is moving sideways in a tight consolidation channel, losing 0.12% on the day at 0.6881. If the pair closes the week around this level, it will lose more than 100 pips for the week and post losses for the seventh straight week.
Earlier today, Chinese news outlet, the South China Morning Post (SCMP), claimed that China was planning to suspend trade negotiations if the U.S. failed to show "sincerity" in the next round of talks. Additionally, People's Daily, the ruling Communist Party’s primary news outlet, said that the trade war with the U.S. couldn't bring the country to its knees and would only make them stronger.
Meanwhile, the heavy selling pressure surrounding the major European currencies and the antipodeans allowed investors to return to the relatively safer greenback, helping the US Dollar Index advance to its highest level in two weeks near 98 and keeping the bearish pressure intact. At the moment, the DXY is up 0.08% on the day at 97.90.
The only data from the U.S. today showed that the University of Michigan's Consumer Sentiment Index in May (preliminary) improved to 102.4 from 97.2 to provide an additional support to the DXY.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
