AUD Rises to 0.6980 as Mixed US Data Cushions Dollar Gains

The AUD/USD pair advanced to around 0.6980 on Friday, bouncing from earlier losses as the US dollar weakened amid mixed US economic releases. Positive housing starts and consumer confidence were offset by weaker building permits and stagnant industrial production.

June US housing starts rose to an annualised rate of 1.43 million, surpassing the 1.31 million forecast and up from 1.20 million in May.

However, building permits fell to 1.37 million month‑over‑month, missing both the 1.40 million expectation and the prior 1.41 million print, marking a 3.0% annual decline.

Industrial production edged up 0.1% month‑over‑month, falling short of the 0.2% forecast and matching the previous reading.

The University of Michigan’s preliminary consumer sentiment index rose to 54.4 in July, up from 49.5 and above the 51.0 forecast, while the expectations component climbed to 54.0 from 50.7.

Federal Reserve Bank of Cleveland President Beth Hammack kept a cautious outlook, stating that inflation remains broad‑based and persistently high. She highlighted ongoing pressures on businesses from energy costs, insurance, supply‑chain disruptions and the rapid expansion of AI data centres.

Short‑term technical analysis:

Upside resistance is initially encountered at the horizontal level of 0.6986, followed closely by the 20‑period SMA at 0.6988, with a stronger cap at 0.7001. Downside support is clustered around 0.6977 and 0.6974, while deeper structural support aligns with the 100‑period SMA at 0.6934, which would become relevant if sellers regain control.

(The technical analysis of this story was written with the help of an AI tool. Know more.)