AUD/USD trades at fresh session highs near 0.6660 ahead of key US data
- AUD/USD is posting modest daily gains on Friday.
- Private Sector Credit in Australia stayed unchanged in April.
- Focus shifts to Personal Income and Personal Spending data from US.
The AUD/USD pair came under strong bearish pressure toward the end of the American session and fell to 0.6620 area. Heightened US-China tensions over Hong Kong continued to weigh on China-proxy AUD in the early trading hours of the Asian session.
The only data from Australia on Friday showed that the Private Sector Credit remained unchanged on a monthly basis in April and was largely ignored by the market participants.
However, the broad-based USD weakness allowed AUD/USD to stage a rebound ahead of the American session. As of writing, the pair was up 0.42% on a daily basis at 0.6663.
Eyes on US data
Despite the dismal market mood, the greenback is having a hard time finding demand on Friday and the US Dollar Index is now testing 98.00 for the first time since mid-March. Investors seem to be opting out to remain on the sidelines ahead of key macroeconomic data releases from the US.
The US Bureau of Economic Analysis will publish the Personal Income and Personal Spending figures for April. The report will also include the PCE Price Index figures, which are unlikely to trigger a significant reaction. Later in the session, the University of Michigan's Consumer Confidence Index will be looked upon for fresh impetus as well.
Finally, US President Donald Trump is expected to host a news conference on China toward the end of the day.
Technical levels to watch for
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.
