- AUD/USD struggled to gain any meaningful traction amid the prevalent cautious mood.
- A subdued USD demand, despite a pickup in the US bond yields, helped limit any slide.
- Investors look forward to second-tier US economic releases for some trading impetus.
The AUD/USD pair lacked any firm directional bias on Friday and remained confined in a narrow trading band below the 0.6900 mark through the early European session.
The pair failed to capitalize on the previous session’s late bounce of around 45 pips from the 0.6845 region and remained on the defensive on the last trading day of the week. Investors refrained from placing any aggressive bullish bets amid the prevalent cautious mood.
Growing market worries that a surge in coronavirus cases could trigger fresh lockdown measures continued weighing on investors’ sentiment. This was evident from a softer tone around the equity markets, which capped the upside for the perceived riskier Australian dollar.
Meanwhile, the downside remains cushioned amid a subdued US dollar demand. Despite a modest pickup in the US Treasury bond yields, the greenback struggled to build on its gains recorded over the past two trading session and was seen lending some support to the AUD/USD pair.
Even from a technical perspective, the pair, so far, has managed to defend a support marked by the lower end of a three-month-old ascending trend-channel. This makes it prudent to wait for some follow-through selling before positioning for any further depreciating move.
Market participants now look forward to some second-tier US macro data for some impetus later during the early North American session. Friday’s US economic docket features the release of Core PCE Price Index, Personal Income/Spending data and revised June Michigan Consumer Sentiment Index.
Technical levels to watch
Share
