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• The AUD/USD currency pair traded near the 0.6280 region during Friday’s American session, extending the week’s rebound.
• US sentiment data deteriorated further as tariff risks weighed on Fed flexibility and inflation expectations.
• Key resistance was seen near the 0.6240-0.6260 area, while downside seemed to be cushioned by support at the 0.6180 level.

The Australian dollar strengthened on Friday, as the AUD/USD currency pair approached the 0.6280 zone during the American trading session. The bullish tone for the Aussie emerged as the US dollar only continued to weaken across the board, dragged by lower-than-expected economic data and growing investor concern over inflation and trade policy. While momentum cautiously improved, the broader trend remained technically bearish, as resistance zones seemed to limit additional upside.

Market Movers: US Dollar Dropped on Consumer Gloom and Tariff Fallout

• The US Dollar Index (DXY) continued to weaken, as the US dollar slid toward the 100 area and marked fresh three-year lows during Friday’s trading session.
• April’s University of Michigan sentiment survey missed expectations, while soft PPI figures revived disinflation concerns.
• Federal Reserve policymakers seemingly remained cautious, as they warned that while core inflation expectations are still stable, tariff-driven price pressures may persist longer than anticipated.
• President Trump reiterated his confidence in reaching a deal with China, although tariffs remained elevated—145% on Chinese imports and 10% across the board for other nations.
• Fed Reserve officials Musalem and Williams noted that a potential shift in long-term inflation expectations could limit the Fed’s policy options in the coming quarters.

AUD/USD Technical Analysis

The AUD/USD currency cross extended its recovery for the third straight session on Friday. The duo approached the upper range of its daily movement, as price action was contained between the 0.6180 mark and the 0.6287 level. Despite Friday's upward push, the overall technical structure remained fragile.

The Relative Strength Index (RSI) printed a reading at around 50, which is neutral but with a bullish lean as it continued to steadily rise. Meanwhile, the MACD still signaled further weakness as it printed a red bar, which seemed to indicate that sellers hadn't exited the pair entirely. The Ultimate Oscillator and Stochastic readings remained neutral, which suggested that the recent market trend lacked conviction.

From a trend-following standpoint, all major moving averages continued to point downward. The 20-day, 100-day, and 200-day Simple Moving Averages, along with the 30-day EMA, all confirmed the lingering bearish pressure.

Key resistance was noted at the levels of 0.6244, 0.6261, and 0.6262, while support was seen at the levels of 0.6236, 0.6215, and 0.6180. A break above the 0.6260 area in the coming days could potentially open the door for a stronger bullish correction, though the technical bias has remained cautious.

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