AUD/USD recovers modestly from multi-week lows, steadies around 0.7700
- AUD/USD touched its lowest level in more than three weeks on Friday.
- AUD/USD remains on track to close the week in the red.
- US Dollar Index holds above 90.00 after the latest US data.
The AUD/USD pair extended its daily slide in the early American session and touched its lowest level since early May at 0.7677. Although the pair managed to stage a modest rebound in the last couple of hours, it is still down 0.45% on the day at 0.7705 and remains on track to close the third straight week in the negative territory.
DXY retreats from two-week tops
Earlier in the day, the US Bureau of Economic Analysis announced that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's favoured gauge of inflation, rose to 3.1% on a yearly basis in April from 1.9% in March. The initial reaction to this data provided a boost to the greenback and the US Dollar Index (DXY) rose to 90.45, highest level in two weeks, before losing its traction. At the moment, the DXY is posting small daily gains at 90.05.
Other data from the US showed that Personal Spending in April increased by 0.5%. On a negative note, Personal Income declined by 13.1% in the same period.
Meanwhile, the positive shift seen in market sentiment is making it difficult for the greenback to preserve its strength ahead of the weekend. Currently, the S&P 500 and the Nasdaq Composite indexes are up 0.4% and 0.75%.
Technical levels to watch for