AUDUSD is trading below, waiting for new impetus from US data

The AUDUSD is halting this week’s bullish trend near the 100-day simple moving average, just ahead of the 0.6700 level.

The AUDUSD pair struggles to build on its weekly gains from the previous three sessions and oscillates between modest gains. And losses as we head into Friday’s North American session. The pair, however, is currently located near the 0.6770-0.6775 range. Almost steady for the day, and is only a few pips off its best level since February 24 that was touched on Thursday.

A modest USD recovery from a one-year low turns out to be a significant headwind.

The AUDUSD pair is being hampered by a little US Dollar (USD) bounce from a one-year low reached earlier this Friday. The Federal Reserve (Fed) is expected to suspend its rate-hiking cycle amid signs of easing inflationary pressures in the US. Which limits the Greenback’s upside potential. This increased the odds.

the Producer Price Index and the week’s weaker consumer inflation data suggested that the disinflation process is going well.

Aside from this, a generally upbeat risk tone might benefit the safe-haven dollar and help the risk-averse Australian. In addition, the positive Australian jobs report released on Thursday boosted expectations for a 25-basis point rate increase at the Reserve Bank of Australia (RBA) meeting in May and bolsters the possibility of some dip-buying around the AUDUSD pair. But, before initiating new bets, bulls may wait for price to rise over the 100-day Simple Moving Average (SMA), which is now above 0.6700.

Participants in the market are now anticipating the US economic calendar, which will feature the release of monthly retail sales numbers and the Michigan Consumer Sentiment Index, preliminary.

This might affect the USD price dynamics and give the AUDUSD pair some momentum, coupled with US bond yields and the overall risk attitude in the market. Spot prices are still expected to post significant weekly gains, though.

AUDUSD Daily Trends