- AUD/USD retreats below 0.6850, still poised to make a 2.40% weekly gain, its highest in 2023.
- UoM US Confidence data provided some support to the USD.
- DXY Index stabilised below 100.00 but remains vulnerable.
At the end of the week, the Aussie lost some ground against the Greenback as US Treasury yields somewhat recovered, lending the USD support. However, the pair is set to see further upside as it is expected the Federal Reserve (Fed) will tilt more dovish following soft inflation data from June.
In a tough week for the USD it was reported that the Core Consumer Price Index (CPI) from the US from June, dropped to 4.8% YoY in June, while the Core Producer Price Index (PPI) slid to 2.6% YoY in the same period. As markets seem to be taking off the table another rate hike past the July meeting, US Treasury yields declined, making the USD face severe selling pressure.
On the data front, the University of Michigan (UoM) reported that its Consumer Confidence Index increased to 72.6 in July from it previous 65.5 and provided some support for the USD.
On the Aussie’s side, investors await labor market data next week, including the Employment Change and Unemployment rate figures from June to be released next Thursday. In addition, investors should keep an eye on China’s situation as it is expected that the Chinese government will announce stimulus measures to bolster the economy. Regarding the Reserve Bank of Australia (RBA), Deputy Governor Bullock was appointed as the new Governor to replace Governor Lowe and her term is set to begin in September 18.
AUD/USD Levels to watch
Despite Friday’s downside movements, the AUD/USD’s outlook is bullish for the short term. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) stand strong in positive territory while the pair trades above the 20, 100 and 200-day Simple Moving Averages.
Resistance Levels: 0.6900 (June high), 0.6950,0.6980.
Support Levels: 0.6785, 0.6750, 0.6715 (20-day Simple Moving Average).
AUD/USD Daily chart
-638249468263994885.png)
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.
Recommended content
Editors’ Picks
AUD/USD: A decent hurdle remains around 0.6400
AUD/USD’s two-day rebound halted on Tuesday following another failed attempt to assault the 0.6400 region, all despite the persistent sell-off in the Greenback ahead of the FOMC event.
EUR/USD leaves the door open to further advances
EUR/USD rose for the third straight day, clinching fresh 2025 peaks past the 1.0950 level amid further selling mood hurting the US Dollar and auspicious news from the German parliament.
Gold pressures record highs, aims to extend gains
Gold prices maintain their constructive bias well in place on Tuesday, now receding somewhat following earlier record peaks near the $3,040 mark per troy ounce in response to mitigating geopolitical effercescense around the Russia-Ukraine crisis.
Bitcoin is dead: Expect a rally to $166k
Indeed, based on the Bitcoin Fear and Greed Index, which has been at Fear to Extreme Fear levels for almost a month now, one would assume that Bitcoin (BTCUSD) is dead.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.