AUD/USD loses bullish momentum, retreats below 0.7380

AUD/USD misplaced its traction after rising above 0.7200 on Friday.
Market temper turns cautious in advance of the weekend.
US Dollar Index turns flat on the day close to 92.50.
The AUD/USD pair climbed to a every day excessive of 0.7410 on Friday however misplaced its traction all through the American session. As of writing, the pair was once nevertheless up 0.13% on the day at 0.7375.

The bad shift witnessed in market sentiment appears to be making it hard for the pair to retain its bullish momentum in advance of the weekend. The S&P five hundred Index, which opened in the high-quality territory, is presently dropping 0.2% on the day at 4,484.

On the different hand, the US Dollar Index (DXY) is additionally staging a rebound from the day by day low it touched at 92.33. At the moment, the DXY is without a doubt unchanged on the day at 92.49.

The facts from the US published on Friday that the annual Producer Price Index (PPI) superior to a new series-high of 8.3% in August from 7.8% in July. Meanwhile, Cleveland Federal Reserve Bank President Loretta Mester stated that she would nonetheless like to start tapering asset purchases some time this yr no matter the susceptible August jobs report.

AUD/USD outlook
According to FX Strategists at UOB Group, AUD/USD may want to throwback to 0.7320 in the close to term.

“AUD is possibly to consolidate and alternate inside a 0.7320/0.7460 range,” analysts said. “Looking ahead, solely a day by day closing under 0.7320 would indicate the begin of a deeper pullback. At this stage, the prospect for AUD to beneath 0.7320 is no longer high.”

AUD/USD dangers a deeper pullback under 0.7320 – UOB.

 

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