AUD/USD retreats modestly below 0.6800, holds far from decade lows
- Aussie flat for the day, consolidates rebound from multi-year lows.
- US Dollar relatively quiet on Friday, falls versus CHF, JPY after Trump’s comments.
The AUD/USD pair continues to move sideways on Friday, and also it is about to end the week unchanged after being able to recover from decade lows. Since the Asian session, it is trading hovering around 0.6800, in a small range between 0.6820 and 0.6770
As of writing, it is looking at the daily lows following comments from US President Trump. He said to reporters at the White House that he wasn't ready to do anything yet on a possible deal with China and added that September’s talks in Washington might be canceled. His comments pushed equity prices to the downside and weigh on market sentiment.
Earlier today, data from the US showed the Producer Price Index (PPI) rose in line with expectations, but the core unexpectedly dropped. Market participants ignored US data as focus appears to be on global growth concerns and trade wars.
The Aussie was nos affected on Friday by “dovish” comments from Reserve Bank of Australia Governor Lowe. He repeated that the central bank is prepared to adopt unconventional policy measures if required.
On a weekly basis, AUD/USD is about to end flat which could be seen as positive taking into account it rebounded more than 125 pips after falling on Wednesday to 0.6676, the lowest intraday level in ten years.
Technical levels to watch