The Aussie is testing the 0.7000 psychological line, breaking a two-day uptrend while stepping back from the weekly top. In doing so, the risk-barometer pair portrays the market’s lack of clarity, as well as the US dollar’s rebound, amid a quiet Asian session on Friday.
The US Dollar Index recovered from the weekly near 103.40 to 104.00 at the latest. US Building Permits and Housing Starts eased in May to 1.695M and 1.549M respectively while the Initial Jobless Claims 4-week average inched up to 218.5K versus 215K expected during the period ended on June 10. Further, Philadelphia Fed Manufacturing Survey printed a negative figure of -3.3 for June, the first such contraction since May 2020.
Given the absence of key economic data at home, Aussie traders will pay attention to the risks and the US Industrial Production for May, expected at 0.4% versus 1.1% prior, for intermediate directions ahead of a speech from Fed’s Powell.
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