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AUD/USD steadies above 0.6700, looks to snap six-week losing streak

  • AUD/USD looks to post weekly gains for first time in 2020.
  • US Dollar Index clings to small gains above 99.
  • Consumer Confidence improves in US, Industrial Production continues to contract.

The AUD/USD pair is struggling to make a decisive move in either direction on Friday and continues to fluctuate in a relatively tight range above the 0.6700 handle. As of writing, the pair was virtually unchanged on a daily basis at 0.6718 and was looking to post weekly gains for the first time in 2020.

Copper's upbeat performance this week helped the commodity-sensitive AUD outperform the greenback. "Copper edged lower on Friday but remained on track for a second week of gains as investors decided a plunge in prices triggered by the coronavirus outbreak in China may have been overdone," Reuters reported.

DXY stretches higher despite mixed data

Although the US Dollar Index edged lower toward the 99 handle in the early trading hours following the first batch of US data, it was able to retrace its fall and now remains on track to post its highest weekly close since early October.

Retail Sales in January increased by 0.3% on a monthly basis in January to match the market expectation, the data published by the US Census Bureau showed on Friday. On a negative note, Industrial Production contracted by 0.3% in January following December's 0.4% decline to weigh on the greenback.

Nevertheless, the University of Michigan's Consumer Confidence Index improved to 100.9 in February's advanced reading from 99.8 in January and helped the USD gain traction. As of writing, the US Dollar Index was up 0.04% on the day at 99.14, not allowing the pair to break out of its daily range.

Technical levels to consider

 

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