- On Friday's session, the AUD/USD lost more than 1% pips and poised to closed a 2.9% weekly decline
- Negative market sentiment following mixed US PMIs from June weighs on the Aussie.
- Lower US bond yields and losses seen on Wall Street signal flightto-safety flows.
On Friday, the Aussie faced severe selling pressure and the AUD/USD fell to its lowest level since early June towards the 0.6660 area. In that sense, global economic downturn fears following weak UK and Eurozone PMIs, followed then by mixed US PMIs favored a sour market mood and hence benefited the US Dollar.
Investors assess preliminary June PMIs
On Friday, PMIs indicated mixed results for the US in the month of June, according to the S&P Global report. The Manufacturing PMI for June, fell to a five-month low, reaching 46.3, failing to live up to the expectations of 48.3. On the positive side, the Services PMI came slightly above the expectations at 54.1 vs the 54 anticipated by markets. Moreover, the Global Composite PMI dropped to 53 vs the 54.4 expected.
Adding to the negative market environment, the 10-year bond yield declined to a low of 3.70% while the 2-year yield fell to 4.70% and the 5-year to 4%, respectively. Moreover, the S&P 500 index (SPX) is seeing 0.6% losses, the Dow Jones Industrial Average (DJI) a 0.51% decline, and the Nasdaq Composite (NDX) a 0.92% loss.
Regarding the next sessions, attention now turns to next week’s Core Personal Consumption Expenditures (PCE) and Gross Domestic Product (GDP) data from the US where investors will get a clearer outlook of the economic activity and inflation in order to start modeling their expectations towards the next Fed meeting in July. On the Australian side, the focus is the Monthly Consumer Price Index from May.
AUD/USD Levels to watch
The AUD/USD holds a bearish outlook for the short term, as per the daily chart. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both fell to negative territory, and below the 20,100 and 200-day Simple Moving Averages (SMAs). The negative outlook is also seen in the weekly chart where the pair is set to posit the largest weekly decline since March.
In case the AUD/USD loses more ground in the 0.6640 zone, the 0.6620 area and psychological mark at 0.6600 could come into play. On the flip side, the following resistances line up at the 200-day SMA at 0.6690, followed then by the 20-day SMA at 0.670 and the 100-day Simple Moving SMA at 0.6712.
AUD/USD Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD stays pressured toward 1.2900 ahead of UK Budget Report
GBP/USD remains under pressured toward 1.2900 in the European session after the UK's ONS reported that the annual CPI inflation softened to 2.8% in February from 3% in January. This reading came in below the market expectation of 2.9%, weighing on the Pound Sterling ahead of the UK Budget Report.
EUR/USD wavers near 1.0800, US data eyed
EUR/USD trades sideway near 1.0800 in Wednesday's European trading hours as the US Dollar struggles amid the latest tariff threats by US President Trump. Dovish ECB commentary limits the pair's upside ahead of US data and Fedspeak.
Gold bid with Copper rising to record high on tariff threat
Gold’s price is heading to $3,020 at the time of writing on Wednesday and has turned this week’s performance positive after its initial move lower on Monday. The precious metal is being bought together with other precious metals as Copper pops to a new all-time high.
Shiba Inu Price Forecast: SHIB rallies as trading volume rises 228% amid increase in bullish bets
Shiba Inu (SHIB) price extends its gains by 8% and trades at $0.000015 at the time of writing on Wednesday, rallying over 15% so far this week.
Seven Fundamentals for the Week: Tariff news, fresh surveys, the Fed's preferred inflation gauge are eyed Premium
Reports and rumors ahead of Trump’s reciprocal tariffs announcement next week will continue moving markets. Business and consumer surveys will try to gauge where the US economy is heading. Core PCE, the Fed's preferred inflation gauge, is eyed late in the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.