The Australian Dollar recovers intraday losses as traders book profits on the US Dollar after a two-week rally ahead of quarter-end adjustments.
AUD/USD climbed to 0.6904 on Friday, recovering from earlier declines as the US Dollar weakened. Investors took profits on the Greenback following a two-week rally, reducing demand ahead of month-end and quarter-end portfolio rebalancing.
The Australian Dollar remains under pressure despite the rebound, with sentiment tied to China’s economic performance. Mixed Chinese data—including a sharp drop in May Retail Sales and steady Industrial Production—has left markets cautious about demand for Australian exports like iron ore and coal.
Technical indicators suggest limited upside for AUD/USD in the near term. The pair hovers below the 100-period SMA at 0.7016, with resistance at 0.6906 and 0.6917. The RSI at 39 signals weak momentum, indicating recovery attempts may struggle without a break above key levels.