AUD/USD Remains Stable Above 0.7300 Level
The AUD/USD pair has moved higher for the sixth day in a row on Friday. Although it has lacked solid continuation and has remained trapped within a familiar range, just above the 0.7300 level.
The pair has built on the previous day’s good bounce of around 60 pips, from weekly lows. It gained some traction on the last trading day of the week. The prevailing selling bias around the US dollar is seen as one of the significant factors lending some assistance to the AUD/USD pair.
As investors look beyond the Fed’s optimistic assessment of the US economic recovery, the dollar has come under renewed selling pressure following the rather unimpressive US macro data on Thursday. The Philadelphia Fed manufacturing index fell to 15 points in September from 17.2 the previous month. According to the US Labor Department, initial jobless claims dropped to 860,000. Meanwhile, building permits and home construction fell short of market expectations.
Risk sentiment prevented investors from buying AUD
However, softer sentiment in risk appetite has prevented investors from buying the higher perceived risk Australian dollar, as shown by the cautious mood in equity markets. This, in turn, has limited any uncontrolled bullish movement for the AUD/USD pair, at least for now.
Even from a technical perspective, the pair has been swinging within this range for the last week. This makes it cautious to wait for some solid continuation buying before positioning for further gains towards the recovery from the 0.7400 level. It was enroute to yearly highs around the 0.7415 region.
Investors await the Consumer Sentiment Index for September
Market participants now await the release of the University of Michigan Consumer Sentiment Index for September. The data can influence USD price dynamics. Which could in turn help investors seize some significant opportunities along with broader market risk sentiment.
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