Australian Dollar holds as Oil rally offers no help
AUD/USD is down 0.36% for the day, but still above the 0.7000 region, giving back Wednesday's gains as the US Dollar (USD) firms across the board. The US Dollar Index (DXY) is up 0.28% near the 100.00 psychological level.
The Australian Dollar maintained its position above the 0.7000 level on Friday as the US Dollar strengthened, despite the oil market rally. Crude oil prices surged over 3% to $77.67 following reports that vessels linked to countries Tehran deems hostile would be barred from the Strait of Hormuz under the proposed deal. However, a commodity-linked currency such as the Australian Dollar typically benefits from such moves.
China's economic data showed strong growth, with exports increasing 22.2% and imports slowing to 27.9%, narrowing the trade surplus to $107 billion. The US Nonfarm Payrolls report for the same day could impact the Greenback, potentially squeezing the Australian Dollar from both sides. On the technical chart, AUD/USD is trading at 0.7031, between the 100-period Simple Moving Average (0.7001) and the 20-period SMA (0.7035).
The Relative Strength Index is around 50, indicating consolidative momentum. The nearest resistance level is at 0.7033, with support at 0.7023 and the 100-period SMA at 0.7001.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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