AUD/USD struggles to recover its losses, stays near mid-0.74s
- AUD/USD looks to close the week with a loss of more than 100 pips.
- US Dollar Index stays in the range below 95.
- Mixed macroeconomic data releases from the US fail to provide a catalyst.
After closing the previous day below the critical 0.75 mark with a daily loss of nearly 100 pips, the AUD/USD pair failed to make a meaningful recovery on Friday and continued to edge lower. As of writing, the pair was trading at its lowest level since mid-May at 0.7455 and losing 0.3% on the day.
The first data from the United States on Friday showed that the New York Fed's Manufacturing Index improved to 25 in June from 20.1 in May to beat the market expectations. In the meantime, a separate report released by the Board of Governors of the Federal Reserve revealed that the monthly industrial production in May contracted by 0.1% with the capacity utilization edging lower to 77.9% from 78.1%.
Following the mixed macroeconomic data, the US Dollar Index continues to consolidate its gains. After touching its highest level in more than 11 months at 95.15, the DXY is moving sideways below the 95 mark and was last seen at 94.85, where it was down 0.07% on the day.
On a weekly basis, the pair retraced all of its earning from the previous three weeks and is looking to close with a loss over 150 pips.
Technical outlook
0.7500 (psychological level) now aligns as the first technical resistance ahead of 0.7550 (50-DMA) and 0.7610 (Jun. 13 high). On the downside, supports are located at 0.7410 (May 8 low), 0.7370 (Jun. 1, 2017, low) and 0.7330 (May 9 low).
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.
