AUD/USD fails to stage a convincing rebound, slumps to weekly lows near 0.7750

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  • AUD/USD came under renewed bearish pressure ahead of American session.
  • AUD/USD is already losing more than 100 pips on Friday.
  • US Dollar Index continues to push higher toward 91.00 ahead of US data.

Following Thursday’s sharp decline, the AUD/USD pair managed to stay above 0.7800 during the European trading hours but came under strong bearish pressure in the last hour. As of writing, the pair was losing more than 100 pips, or 1.6%, on the day at 0.7746.

USD continues to outperform its rivals

The unabated buying pressure surrounding the USD remains the primary market theme ahead of the weekend. The US Dollar Index (DXY) rose sharply in the late American session on Friday fueled by an impressive rally seen in the US Treasury bond yields.

Although the benchmark 10-year T-bond yield, which rose more than 10% on Thursday, is staging a correction and is losing nearly 3% on Friday, the DXY continues to push higher. Supported by safe-haven flows, the index is up 0.65% on the day at 90.72.

Later in the session, the Core Personal Consumption Expenditures (PCE) Price Index data from the US, the Fed’s preferred gauge of inflation, will be watched closely by market participants. Additionally, the US Bureau of Economic Analysis will release the Personal Income and Personal Spending figures for January. Finally, the University of Michigan will publish the final version of its February Consumer Sentiment Index.

Meanwhile, investors will keep a close eye on US Treasury bond yields and the performance of Wall Street’s main indexes. Currently, the S&P 500 Futures are down 0.35% on the day, suggesting that the market mood is likely to remain sour in the second half of the day.

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