- AUD / USD is trading in a relatively tight range on Friday.
- The cautious mood of the market is not allowing the AUD to strengthen.
- The US dollar index registers modest daily gains, remains below 90.00.
Following Thursday’s impressive rally, the pair AUD/USD appears to have entered a consolidation phase on Friday. However, after falling to a daily low of 0.7583, the pair rebounded modestly and was last seen shedding 0.15% on the day at 0.7610.
AUD / USD rally loses steam on Friday
Australia’s upbeat jobs report, which showed the unemployment rate declining to 6.8% in November from 7%, allowed AUD / USD to advance to its highest level since June 2018 at 0.7641.
Also, strong selling pressure surrounding the dollar provided an additional boost to the pair. With the S&P 500 and Nasdaq Composite indices renewing all-time highs, the US Dollar Index (DXY) fell to a new multi-year low of 89.73.
On Friday, moderate market action and a lack of fundamental drivers helped the DXY rebound. At the moment, the index is holding on to small daily gains at 89.92, forcing AUD / USD to remain in negative territory.
No major US macro data will be released on Friday and risk sentiment could affect the USD market valuation in the second half of the day. At time of writing, S&P 500 futures were mostly flat on the day and a deep correction in major Wall Street indices could help DXY try to close the week above 90.00.
Technical levels
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