• US dollar drops on Friday as stocks soar.
  • Commodity prices also recover, US yields remain low. 
  • AUD/USD is modestly higher for the week, holds above recent lows.

The AUD/USD broke above 0.6920 and jumped to 0.6957 on Friday, reaching the highest level in two days. Stocks are rising sharply in Wall Street helping the aussie.

Risk appetite at the end of a positive week

Despite recession fears, investors went for stocks. US stocks indexes are up by more than 2%, extending weekly gains. Negative economic data did not weigh on sentiment and kept US yields far from the recent peak, weakening the dollar.

The AUD/USD recovered from weekly lows under 0.6900, erasing weekly losses. The short-term outlook for the aussie improved. Above 0.6950 the next resistance stands at 0.6990, the last defense to 0.7000. A decline back under 0.6925 would expose the weekly low around 0.6870.

Week ahead

In the US attention will likely continue to be on how the Federal Reserve evaluates the current outlook between high inflation and recession fears. Regarding data, the PCE report (with the Core PCE) on Thursday will be the most important followed by the ISM Manufacturing on Friday.

The economic calendar for Australia show May’s retail sales numbers due on Wednesday. “While consumer sentiment has slumped give rising inflation and a lower confidence around the economic outlook, household balance sheets are in good shape. Further, a strong labour market should keep household spending elevated. A strong retail beat will boost the case for another aggressive move by the RBA in July after their outsized 50bps hike”, said analysts at TD Securities.

Technical levels

AUD/USD

Overview
Today last price 0.6946
Today Daily Change 0.0046
Today Daily Change % 0.67
Today daily open 0.69
 
Trends
Daily SMA20 0.7074
Daily SMA50 0.7099
Daily SMA100 0.7214
Daily SMA200 0.7234
 
Levels
Previous Daily High 0.6928
Previous Daily Low 0.6868
Previous Weekly High 0.707
Previous Weekly Low 0.685
Previous Monthly High 0.7267
Previous Monthly Low 0.6828
Daily Fibonacci 38.2% 0.6891
Daily Fibonacci 61.8% 0.6905
Daily Pivot Point S1 0.6869
Daily Pivot Point S2 0.6839
Daily Pivot Point S3 0.6809
Daily Pivot Point R1 0.6929
Daily Pivot Point R2 0.6959
Daily Pivot Point R3 0.6989

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Bulls and bears jostle between 50-DMA and 0.7025 hurdle

AUD/USD: Bulls and bears jostle between 50-DMA and 0.7025 hurdle

AUD/USD remains idle around d 0.7000 as traders await fresh signals during Tuesday’s Asian session, after the upbeat start of the week. The Aussie pair seesaws between the 50-DMA and the downward sloping resistance line from late April.

AUD/USD News

EUR/USD rebound fades near 1.0200 as traders await US inflation

EUR/USD rebound fades near 1.0200 as traders await US inflation

EUR/USD seesaws around 1.0200, after retreating from 1.0221, as traders seek fresh clues during Tuesday’s Asian session. The major currency pair began the week on a positive front before paring some of the gains by the end of Monday.

EUR/USD News

Gold marches towards $1,800 on lower consensus for US Inflation

Gold marches towards $1,800 on lower consensus for US Inflation

Gold price has slowed down its upside momentum after printing a high above $1,790.00 in the Asian session. The upside momentum has not been exhausted yet and the precious metal is balancing in a higher market profile after a sheer rally. 

Gold News

Dogecoin: Expect a decline, but don't miss the train if it leaves early pt.2

Dogecoin: Expect a decline, but don't miss the train if it leaves early pt.2

Dogecoin coils within a newfound congestion zone for nearly 2 months. A sweep the lows event could present itself in the coming days. Invalidation of the bearish scenario is a definitive closing candle above $0.0780. Said price action would induce a 75% rally towards $0.12.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures