• AUD/USD stays under modest bearish pressure on Friday.
  • US Dollar Index climbs to fresh weekly tops above 90.30.
  • Eyes on the UoM’s US Consumer Sentiment Index for June.

After spending the Asian session in a tight range around 0.7750, the AUD/USD pair gained traction and rose to a daily high of 0.7775. However, with the greenback regathering its strength ahead of the American session, the pair lost its traction and was last seen trading at a daily low of 0.7725, losing 0.35% on the day.

Supported by a more-than-1% gain seen in the benchmark 10-year US Treasury bond yield, the US Dollar Index (DXY) turned north and reached its highest level in a week at 90.37. As of writing, the DXY is up 0.3% at 90.32.

In the meantime, Wall Street’s main indexes remain on track to open modestly higher with the S&P Futures and the Dow Futures rising 0.18% and 0.25%, respectively. In case risk flows start to dominate the markets in the second half of the day, the USD could have a tough time continue to outperform its rivals. The only data featured in the US economic docket will be the University of Michigan’s preliminary Consumer Sentiment Index for June.

AUD/USD near-term outlook

“While shorter-term downward momentum has improved somewhat and AUD could dip below 0.7700, it has to close below 0.7680 before a sustained decline can be expected,” said UOB Group FX Strategists. “The prospect for AUD to close below 0.7680 is not high but it would remain intact as long as AUD does not move above 0.7765.”

Technical levels to watch for

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