AUD / USD recovers modestly from multi-week lows and hovers around 0.7700

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  • AUD / USD touched its lowest level in more than three weeks on Friday.
  • AUD / USD is still on track to close the week in bearish numbers.
  • The US Dollar Index remains above 90.00 after the latest US data.

The pair AUD/USD it extended its daily decline early in the US session and hit its lowest level since early May at 0.7677. Although the pair managed to make a modest rally in recent hours, down 0.45% on the day to 0.7705 and is still on track to close the third consecutive week in negative territory.

DXY retraces from 2-week highs

Hours earlier, the U.S. Bureau of Economic Analysis announced that the Basic Personal Consumption Expenditure Price Index (PCE), the Fed’s favorite inflation indicator, rose to 3.1% annually in April from 1.9% in March. . The initial reaction to this data gave a boost to the dollar and the US dollar index (DXY) rose to 90.45, the highest level in two weeks, before losing traction. At the moment, the DXY records small daily gains at 90.05.

Other US data showed that personal spending in April increased 0.5%. As a negative tone, Personal Income fell 13.1% in the same period.

Meanwhile, the positive shift in market sentiment is making it difficult for the dollar to retain its strength ahead of the weekend. Currently, the S&P 500 and Nasdaq Composite indices are up 0.4% and 0.75%.

Technical levels

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