AUD/USD loses bullish momentum, retreats below 0.7380

AUD/USD lost its traction after rising above 0.7200 on Friday.
Market mood turns cautious ahead of the weekend.
US Dollar Index turns flat on the day near 92.50.

Eren Sengezer FXStreet

The AUD/USD pair climbed to a daily high of 0.7410 on Friday but lost its traction during the American session. As of writing, the pair was still up 0.13% on the day at 0.7375.

The negative shift witnessed in market sentiment seems to be making it difficult for the pair to preserve its bullish momentum ahead of the weekend. The S&P 500 Index, which opened in the positive territory, is currently losing 0.2% on the day at 4,484.

On the other hand, the US Dollar Index (DXY) is also staging a rebound from the daily low it touched at 92.33. At the moment, the DXY is virtually unchanged on the day at 92.49.

The data from the US revealed on Friday that the annual Producer Price Index (PPI) advanced to a new series-high of 8.3% in August from 7.8% in July. Meanwhile, Cleveland Federal Reserve Bank President Loretta Mester said that she would still like to begin tapering asset purchases some time this year despite the weak August jobs report.

AUD/USD outlook

According to FX Strategists at UOB Group, AUD/USD could retreat to 0.7320 in the near term.

"AUD is likely to consolidate and trade within a 0.7320/0.7460 range," analysts said. "Looking ahead, only a daily closing below 0.7320 would indicate the start of a deeper pullback. At this stage, the prospect for AUD to below 0.7320 is not high.”

AUD/USD risks a deeper pullback below 0.7320 – UOB.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7378
Today Daily Change	0.0009
Today Daily Change %	0.12
Today daily open	0.7369

Trends
Daily SMA20	0.7308
Daily SMA50	0.7366
Daily SMA100	0.7533
Daily SMA200	0.7609

Levels
Previous Daily High	0.7395
Previous Daily Low	0.7346
Previous Weekly High	0.7478
Previous Weekly Low	0.7284
Previous Monthly High	0.7427
Previous Monthly Low	0.7106
Daily Fibonacci 38.2%	0.7376
Daily Fibonacci 61.8%	0.7365
Daily Pivot Point S1	0.7345
Daily Pivot Point S2	0.7321
Daily Pivot Point S3	0.7296
Daily Pivot Point R1	0.7394
Daily Pivot Point R2	0.7419
Daily Pivot Point R3	0.7443

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.

EUR/USD revisits 1.1780, or daily lows

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to reach daily troughs on Thursday. The pair’s decline comes in response to a sudden bout of USD strength amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.