- The AUD / USD recovery from 0.7170 loses steam at the 0.7270 area.
- The US dollar extends its pullback despite bright US data.
- Australian dollar remains offered below 0.7390 – Commerzbank.
The australian dollar It has appreciated against the US dollar for the second day in a row on Friday, to consolidate at 0.7270 after rebounding from lows of 0.7170 earlier this week. The pair has erased previous losses and is expected to close the week practically unchanged.
The US dollar loses ground despite bright US data.
The aussie took advantage of a weaker US dollar on Friday. The fall in the yields of the US 10-year Treasury bonds, falling below 1.5%, has affected the demand for the dollar. Beyond that, the stagnation in the US debt ceiling is raising concerns about the possible consequences of a credit default, adding negative pressure to the USD.
Macroeconomic figures for the US have been brighter than expected, although the impact on the USD has lessened. ISM’s Manufacturing PMI rose to 61.1 in September from 59.9 in August, beating market expectations for a slight decline to 59.6. Beyond that, US consumer spending, a highly relevant contributor to US economic activity, has posted a 0.8% increase in August, beating the market consensus of 0.6%.
The US dollar index, which measures the value of the dollar against a basket of the most traded currencies, has extended its decline from a year-high 94.50 reached earlier this week, although it remains at 94.00 , well above previous highs. The dollar has been recovering steadily in September, fueled by higher US bond yields amid market expectations that the Federal Reserve will be the first major central bank to start cutting its QE program.
AUD / USD remains offered below four-month downtrend at 0.7390 – Commerzbank
From a technical perspective, Karen Jones, head of the FICC technical analysis research team at Commerzbank, sees that the Aussie has a lower bias while it is below 0.7390: “The outlook for AUD / USD remains negative. The pair recently missed the four month downtrend at 0.7390 and we will maintain a negative bias while we are capped here (…) We look for losses to 0.7106, the August low. Key support remains at 0.7062 / 0.6991. This represents the lows of September and November 2020. “
Technical levels
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