AUD/USD clings to modest daily gains below 0.7750 as focus shifts to US data
- AUD/USD is posting small daily gains on Friday.
- Broad-based USD weakness is helping AUD/USD stay in the positive territory.
- Focus shifts to Retail Sales and Industrial Production data from US.
Following Wednesday's steep decline, the AUD/USD pair managed to post small daily gains on Thursday and extended its rebound toward 0.7750 on Friday. Ahead of key macroeconomic data releases from the US, however, the pair seems to be having a difficult time gathering momentum. As of writing, AUD/USD was up 0.1% on the day at 0.7737.
Upbeat market mood hurts USD
The broad-based USD weakness is helping AUD/USD to stay afloat in the positive territory. The US Dollar Index, which touched a six-day high of 90.90 on Wednesday, is currently losing 0.3% at 90.45. In the absence of significant fundamental drivers, the greenback struggles to find demand in the risk-positive market environment.
Later in the session, the US Census Bureau will release the April Retail Sales data. The US Federal Reserve's Industrial Production data will be featured in the US economic docket ahead of the University of Michigan's Consumer Sentiment Index.
Meanwhile, the S&P 500 Futures are up 0.6% on the day, suggesting that risk flows could continue to dominate the financial markets in the second half of the day and support AUD.
Technical levels to watch for