- Aussie recovers modestly on Friday, still under pressure.
- US Dollar mixed across the board, on a quiet session.
The AUD/USD pair gained momentum after the beginning of the American session amid a decline of the US Dollar. It printed a fresh daily high at 0.6778 and as of writing it is trading at 0.6765, up 15 pips for the day.
The Greenback lost ground across the board over the last hours amid a modest improvement in market sentiment. Economic data from the US failed to boost the currency. Durable Goods Orders surpassed expectations, but inflation data from the personal income and spending report came in on the soft side. Later, the University of Michigan presented the final results of the Surveys of Consumers, indicating that confidence continued to improve with the main Index rising to 93.2 above the 92 expected.
The pair is falling 0.05%, still holding above 99.00 but moving away from the weekly high it reached earlier today. US yields are lower today. The 10-year accelerated the decline over the last hours, falling back below 1.70% and weigh on the US Dollar.
Technical outlook
Despite rising on Friday still the AUD/USD looks biased to the downside. It is trading at the same level it closed last week, after finding support above 0.6740. A break above 0.6775/80 would negate the bearish short term bias as price would be on top of an important horizontal resistance and also of a downtrend seen in the four-hour chart. Attention then would turn to the 0.6800 area. On the flip side, 0.6740 continues to be critical: a break lower would likely lead to more losses targeting 0.6715. Below the next support stands at 0.6690.
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