AUD / USD falls to a new daily low below 0.7730 as USD continues to gain strength

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  • AUD / USD remains under modest bearish pressure on Friday.
  • The US Dollar Index rises to new weekly highs above 90.30.
  • With an eye on the June MU US Consumer Confidence Index.

After passing the Asian session in a tight range around 0.7750, the AUD / USD pair gained traction and rose to a daily high of 0.7775. However, with the dollar regaining its strength ahead of the US session, the pair lost its traction and was last seen trading at a daily low of 0.7725, shedding 0.35% on the day.

Supported by a gain of more than 1% seen in the benchmark yield on 10-year US Treasuries, the US dollar index (DXY) turned north and reached its highest level in a week at 90.37. At time of writing, the DXY is up 0.3% to 90.32.

Meanwhile, the major Wall Street indices remain on track to open modestly higher with the S&P Futures and Dow Futures rising 0.18% and 0.25%, respectively. Should risk flows begin to dominate the markets in the second half of the day, the USD could struggle to keep outperforming its rivals. The only data included in the US economic record will be the University of Michigan’s Preliminary Consumer Sentiment Index for June.

AUD / USD short-term outlook

“While short-term bearish momentum has improved a bit and the AUD could fall below 0.7700, it has to close below 0.7680 before a sustained decline can be expected,” said UOB Group currency strategists. “The outlook for the AUD to close below 0.7680 is not high, but it would remain intact as long as the AUD does not move above 0.7765.”

Technical levels

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