AUD/USD recovers modestly from multi-week lows, steadies around 0.7700

AUD/USD touched its lowest level in more than three weeks on Friday.
AUD/USD remains on track to close the week in the red.
US Dollar Index holds above 90.00 after the latest US data.

Eren Sengezer FXStreet

The AUD/USD pair extended its daily slide in the early American session and touched its lowest level since early May at 0.7677. Although the pair managed to stage a modest rebound in the last couple of hours, it is still down 0.45% on the day at 0.7705 and remains on track to close the third straight week in the negative territory.

DXY retreats from two-week tops

Earlier in the day, the US Bureau of Economic Analysis announced that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's favoured gauge of inflation, rose to 3.1% on a yearly basis in April from 1.9% in March. The initial reaction to this data provided a boost to the greenback and the US Dollar Index (DXY) rose to 90.45, highest level in two weeks, before losing its traction. At the moment, the DXY is posting small daily gains at 90.05.

Other data from the US showed that Personal Spending in April increased by 0.5%. On a negative note, Personal Income declined by 13.1% in the same period.

Meanwhile, the positive shift seen in market sentiment is making it difficult for the greenback to preserve its strength ahead of the weekend. Currently, the S&P 500 and the Nasdaq Composite indexes are up 0.4% and 0.75%.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7705
Today Daily Change	-0.0042
Today Daily Change %	-0.54
Today daily open	0.7747

Trends
Daily SMA20	0.7762
Daily SMA50	0.7713
Daily SMA100	0.7728
Daily SMA200	0.7521

Levels
Previous Daily High	0.7758
Previous Daily Low	0.7722
Previous Weekly High	0.7814
Previous Weekly Low	0.771
Previous Monthly High	0.7819
Previous Monthly Low	0.7531
Daily Fibonacci 38.2%	0.7744
Daily Fibonacci 61.8%	0.7736
Daily Pivot Point S1	0.7727
Daily Pivot Point S2	0.7706
Daily Pivot Point S3	0.7691
Daily Pivot Point R1	0.7763
Daily Pivot Point R2	0.7778
Daily Pivot Point R3	0.7799

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.

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