- AUD/USD looks to post weekly gains for first time in 2020.
- US Dollar Index clings to small gains above 99.
- Consumer Confidence improves in US, Industrial Production continues to contract.
The AUD/USD pair is struggling to make a decisive move in either direction on Friday and continues to fluctuate in a relatively tight range above the 0.6700 handle. As of writing, the pair was virtually unchanged on a daily basis at 0.6718 and was looking to post weekly gains for the first time in 2020.
Copper's upbeat performance this week helped the commodity-sensitive AUD outperform the greenback. "Copper edged lower on Friday but remained on track for a second week of gains as investors decided a plunge in prices triggered by the coronavirus outbreak in China may have been overdone," Reuters reported.
DXY stretches higher despite mixed data
Although the US Dollar Index edged lower toward the 99 handle in the early trading hours following the first batch of US data, it was able to retrace its fall and now remains on track to post its highest weekly close since early October.
Retail Sales in January increased by 0.3% on a monthly basis in January to match the market expectation, the data published by the US Census Bureau showed on Friday. On a negative note, Industrial Production contracted by 0.3% in January following December's 0.4% decline to weigh on the greenback.
Nevertheless, the University of Michigan's Consumer Confidence Index improved to 100.9 in February's advanced reading from 99.8 in January and helped the USD gain traction. As of writing, the US Dollar Index was up 0.04% on the day at 99.14, not allowing the pair to break out of its daily range.
Technical levels to consider
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
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.