AUD/USD Lacks Solid Continuation

AUD/USD gains some traction on Friday and recovers further from weekly lows. However, the pair lacked solid continuation and settled trapped within a familiar range, just above the 0.7300 level. 

The prevailing sell bias around the USD extended some support to the pair. On the last trading day of the week, AUD/USD was built on Thursday’s good bounce of around 60 pips. The USD’s selling bias was one of the critical factors that granted some support to the AUD/USD pair.

Philly Fed Manufacturing Index fell to 15 points

The release of US macro data took place on Thursday. The report has not been very impressive. The index for general activity in the Philadelphia Federal Reserve’s manufacturing business outlook sank to 15.0 in September. Meanwhile, initial jobless claims dropped to 860,000 on Sept. 6 to Sept. 11, according to the Labor Department. Besides, home construction and building permits decreased.

The Australian dollar has been vulnerable to risk aversion. Softer sentiment in risk appetite has stopped investors from buying the Aussie. It restrained any uncontrolled bullish movement for the AUD/USD pair. 

The AUD/USD pair has been fluctuating within a range for the last week, even from a technical perspective. This makes it reasonable to wait for some substantial buying before positioning for further gains towards the recovery from the 0.7400 level, on the way to yearly highs about the 0.7415 areas.

Markets wait for the release of the University of Michigan

The University of Michigan will release the Consumer Sentiment Survey results for this month. The index is estimated each month based on a household survey of consumers’ opinions on the economy’s current conditions and future expectations. Moreover, market participants are looking forward to the release as it can affect the dollar price dynamics. It could serve investors to seize some significant opportunities and broader market risk sentiment.