- AUD / USD fails to sustain weekly gains, it remains in a familiar range.
- A stronger dollar across the board outweighs risk appetite.
The pair AUD/USD It reversed after the start of the US session amid a stronger US dollar across the board and fell to 0.7728, hitting a new daily low. Get back into negative territory for the week.
The fact that US stocks are rising on Friday does not help the AUD / USD. The influence of market sentiment is being offset by the rally in the US dollar, even as US yields remain in the recent range.
On Friday, the key economic report was the IHS Markit flash services sector which rose to 70.1, significantly above expectations. The number triggered a rally in the US dollar. Metals fell sharply and bond yields rose modestly. Another economic report showed that existing home sales fell 2.7% in April.
From a technical perspective, AUD / USD continues to move sideways, unable to break 0.7800 / 0.7700. The outlook points to the downside in the short term, but support is expected to emerge around 0.7700. A firm break below would suggest more losses down the road. On the upside, immediate resistance is seen at 0.7780, followed by the 07810 zone. A close above 0.7800 would strengthen the outlook for the Aussie.
Technical levels
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