AUD/USD erases weekly losses but remains limited by 0.7580

• AUD/USD rises back into previous range, ends week marginally higher.
• DXY rises modestly on Friday on the back of US data but Aussie manages to recover.

The AUD/USD pair managed to rise during the US session and erased daily losses. The Aussie climbed against the US Dollar even after release of positive US economic data. The NFP report and the ISM, both surpass expectations.

For the third day in a row, AUD/USD is about to post a daily close around 0.7560. It is consolidating after Wednesday’s recovery and is back into the previous trading range.

Fundamentals appear to favor the US dollar, with firmed rate hike expectations from the Federal Reserve but it all appears to be discounted already. The next FOMC meeting is June 12/13. Regarding the Aussie, market participants expect no change from the Reserve Bank of Australia in the short-term. Next week, GDP data from Australia is due.

AUD/USD Levels

To upside, AUD/USD continues to be limited by the 0.7580-0.7600 area. The Aussie needs to break and hold on top in order to open the doors to more gains. The next resistance might be seen at 0.7645 and 0.7675. On the flip side, support could be seen at 0.7520 (20-day moving average), 0.7475 and 0.7445.