AUD/USD dips below $0.79 as USD Strength extends
- The AUD/USD extended its falls, dipping below $0.7900.
- The US Dollar is enjoying a recovery on Friday after suffering losses earlier on.
The AUD/USD is trading below $0.7900 late on Friday, as the US Dollar gains more strength towards the end of the trading week. The greenback began a recovery late in the Asian session and gained momentum later on. The Consumer Sentiment Index by the University of Michigan came out considerably better than expected: 99.9 points against 95.5 that was expected. Earlier, both Building Permits and Housing Starts beat expectations.
In Australia, the Governor of the RBA Phillip Lowe said that a weaker Australian Dollar is better than a stronger one, but did not change the general stance of the RBA. The Australian jobs report released early on Thursday came out within expectations at a gain of 16,000 jobs.
The most recent slide in AUD/USD may be linked to the stock market. Shares shed some of their early gains and sentiment has weakened. The Australian dollar has a positive correlation with stocks.
Support is near, at $0.7892, the low on February 15th. A break lower opens the door towards the week's low at $0.7764 and $0.7650, a high point in January.
On the upside, $0.7990 was a high point earlier this week and the cycle high of $0.8130 is next up.