On Friday, the AUD/USD is struggling to maintain its recovery momentum.
Ahead of US data, the US Dollar Index rises to 92.70.
The major stock indexes on Wall Street are expected to open slightly higher.
On Thursday, the AUD/USD pair dropped more than 30 pips before recovering slightly during Asian trading hours on Friday. However, the pair appears to be struggling to maintain its bullish momentum, with small daily losses last seen at 0.7423.
The USD’s market valuation continues to influence AUD/USD movements ahead of the weekend in the absence of high-tier macroeconomic data releases. Following Wednesday’s sharp decline, the US Dollar Index (DXY) gained 0.2 percent on Thursday and continues to push higher on Friday, limiting AUD/upside. USD’s The DXY is currently trading at 92.66, up 0.12 percent.
The US Census Bureau will release June Retail Sales data later in the session, and the University of Michigan will release the preliminary Consumer Sentiment Index for July.
Meanwhile, US stock index futures are trading slightly higher on Friday, implying that Wall Street’s main indexes may open in the green, supporting the AUD/USD.
The UOB Group’s FX strategists believe the AUD has the potential to fall below 0.7400 in the near future.
“The bias appears to be tilted to the downside,” analysts said, “but AUD must close below 0.7400 before a sustained decline can be expected.” “Even though the likelihood of the AUD moving clearly below 0.7400 has increased, our outlook has not changed. Looking ahead, the next major support below 0.7400 is at 0.7350.”\sAUD/USD: Extra losses below the 0.7400 level – UOB./n
