- AUD/USD spends week fluctuating in relatively tight range.
- Dismal confidence data from US puts modest pressure on USD.
- US Dollar Index looks to cap off week above 98.
The AUD/USD pair is struggling to find direction on Friday as trading action turns subdued amid a lack of significant fundamental drivers. As of writing, the pair was up 0.04% on the day at 0.6777. In fact, the pair is moving up and down in an 80-pip range and is now looking to close the week flat.
Earlier this week, the AUD failed to capitalize on upbeat employment data as concerns over a prolonged US-China trade conflict made it difficult for antipodeans to gather strength.
Tensions remain high on trade front
China this week called the US decision to impose additional tariffs on some Chinese imports as an action against the agreement the sides had reached at the G20 summit in Osaka and said that they will have to take countermeasures. While speaking at a rally in New Hampshire yesterday, US President Donald Trump said that they would lose all the leverage in trade negotiations if they were to take tariffs off the table.
Although the lack of fresh headlines surrounding the trade war allowed risk sentiment to recovery today, the AUD couldn’t attract investors.
Meanwhile, today’s data from the US showed that consumer confidence deteriorated sharply in August with the University of Michigan’s Consumer Confidence Index slumping to 92.1 from 98.4 and missing the market expectation of 97.2. The US Dollar Index retreated from its highs on the disappointing data but remains on track to close the week with a gain of more than 1% above the 98 handle.
Technical levels to watch for