AUD / USD struggles to rise above 0.7100 ahead of US data

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  • AUD / USD is trading in a tight range below 0.7100 on Friday.
  • The US Dollar Index consolidates Thursday’s gains near 93.70.
  • Retail sales and industrial production data will be included in the US economic agenda.

The pair AUD/USD it posted its lowest daily close for October at 0.7092 on Thursday and appears to be struggling to organize a convincing rebound on Friday. At time of writing, the pair was down 0.05% on the day at 0.7088.

The focus shifts to US data.

The risk aversion market environment on Thursday, reflected by sharp falls in global stock indices, allowed the dollar to gain strength against its rivals. The US Dollar Index (DXY) rose to 93.90 and forced AUD / USD to extend its decline.

However, ahead of the release of key US macro data, improving sentiment keeps DXY gains limited. At the moment, the index is down 0.12% on the day to 93.67.

Later in the day, the US Census Bureau will release the retail sales data for September and the Federal Reserve will release the industrial production report. Additionally, the University of Michigan Consumer Sentiment Index for October will also be featured on the US economic agenda.

The impact of this data on market sentiment could drive AUD / USD movements in the second half of the day. For the moment, S&P 500 futures are up 0.23% on the day and a strong rally in major Wall Street indices could weigh on the USD and allow the pair to point above 0.7100.

Technical levels

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Credits: Forex Street

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