AUD/USD climbs above 0.7770, looks to post modest weekly losses

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  • AUD/USD remains on track to finish the day in the positive territory.
  • US Dollar Index stays deep in the red below 90.50.
  • AUD/USD looks to register losses for the week.

The AUD/USD pair preserved its bullish momentum during the American trading hours and touched a daily high of 0.7782. As of writing, the pair was up 0.6% on a daily basis at 0.7775. Despite Friday’s upsurge, AUD/USD remains on track to end the week in the negative territory. 

USD selloff remains intact

The USD’s market valuation continues to drive AUD/USD’s action ahead of the weekend. Despite the weak macroeconomic data releases from the US, Wall Street’s main indexes opened decisively higher and made it difficult for the greenback to find demand. At the moment, the US Dollar Index is losing 0.42% on the day at 90.33 and the S&P 500 Index is rising 1.25%.

The US Census Bureau reported on Friday that Retail Sales in April stayed unchanged at $619.9 billion. Additionally, Industrial Production expanded by 0.7%, falling short of the market expectation of 1%. Finally, the University of Michigan’s Consumer Sentiment Index declined to 82.8 in May from 88.3, compared to analysts’ estimate of 90.4.

In the meantime, the benchmark 10-year US Treasury bond yield is losing more than 1%, putting additional weight on the rate-sensitive USD’s shoulders.

Technical levels to watch for

 

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