AUD / USD dips below 0.7700, appears to post small losses for the week

• AUD / USD continues to push lower ahead of the weekend.
• The US Dollar Index rises to new weekly highs above 90.50.
• Consumer confidence in the US improved modestly in June.

The pair AUD/USD it extended its daily decline in the second half of the day on Friday and touched a weekly low of 0.7689. At time of writing, the pair was shedding 0.75% on the day at 0.7694.

The renewed strength of the USD during US trading hours appears to be weighing heavily on the AUD / USD. After spending most of the day in a tight range below 90.00, the US Dollar Index gained traction and is currently up 0.56% on the day at 90.56. Amid the lack of significant fundamental drivers, the 2% recovery seen in US Treasury yields is helping the USD find demand.

The only US data on Friday showed that the University of Michigan’s Consumer Sentiment Index improved modestly to 86.4 in June’s preliminary reading from 82.9 in May. This figure was slightly better than the market expectation of 84.

AUD / USD outlook

“AUD / USD remains neutral on its weekly chart, hovering around a directionless 20 SMA, and above the longer ones, which are also aimless,” noted FXStreet Chief Analyst Valeria Bednarik . “The Momentum indicator has no direction around its midline, while the RSI is moving lower, currently at 54.”

“The immediate support level is 0.7645, followed by 0.7600 and 0.7531, the latter being the annual low,” adds Bednarik. “Relevant resistances are at 0.7770 and 0.7820, with a break above the latter favoring a bullish extension towards 0.7900.”

AUD / USD Weekly Forecast – Keeps fluctuating, but not for long.

Additional levels