• 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


Today last price 0.6946
Today Daily Change 0.0046
Today Daily Change % 0.67
Today daily open 0.69
Daily SMA20 0.7074
Daily SMA50 0.7099
Daily SMA100 0.7214
Daily SMA200 0.7234
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



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