AUD/USD drops below 0.7700, looks to post small losses for the week
- AUD/USD continues to push lower ahead of the weekend.
- US Dollar Index climbs to fresh weekly highs above 90.50.
- Consumer confidence in US improved modestly in June.
The AUD/USD pair extended its daily slide in the second half of the day on Friday and touched a weekly low of 0.7689. As of writing, the pair was losing 0.75% on a daily basis at 0.7694.
The renewed USD strength during the American trading hours seems to be weighing heavily on AUD/USD. After spending the majority of the day in a tight range below 90.00, the US Dollar Index gained traction and is currently up 0.56% on the day at 90.56. Amid a lack of significant fundamental drivers, the 2% recovery seen in the benchmark 10-year US Treasury bond yield is helping the USD find demand.
The only data from the US showed on Friday that the University of Michigan’s Consumer Sentiment Index improved modestly to 86.4 in June’s preliminary reading from 82.9 in May. This print came in slightly better than the market expectation of 84.
AUD/USD outlook
“The AUD/USD pair is still neutral in its weekly chart, seesawing around a directionless 20 SMA while above the longer ones, which also stand aimless,” noted FXStreet Chief Analyst Valeria Bednarik. “The Momentum indicator heads nowhere around its midline, while the RSI grinds lower, currently at 54.”
“The immediate support level is 0.7645, followed by 0.7600 and 0.7531, the latter being the yearly low,” Bednarik adds. “Relevant resistances come at 0.7770 and 0.7820, with a break above the latter favoring a bullish extension toward 0.7900.”
AUD/USD Weekly Forecast: Still ranging, but not for long.