AUD/USD retreats below 0.7050, clings to small daily gains
- AUD/USD rose to a daily high of 0.7072 on Friday.
- Wall Street's main indexes trade deep in the negative territory.
- US Dollar Index rebounds toward 94.00 on safe-haven flows.
After climbing to a fresh daily high of 0.7072, the AUD/USD pair erased the majority of its daily gains and was last seen trading at 0.7036, where it was still up 0.1% on a daily basis.
USD rebounds as US stocks turn red
The heavy bearish pressure surrounding major equity indexes in the US allowed the greenback to regain its footing as a safe-haven and forced AUD/USD to turn south. As of writing, the S&P 500 and the Dow Jones Industrial Average indexes are down 1.7% and 1.5% respectively, while the US Dollar Index is down only 0.05% on the day at 93.88.
Earlier in the day, the data published by the US Bureau of Economic Analysis revealed that Personal Spending and Personal Income increased by 1.4% and 0.9% in September, respectively. Although these figures came in better than analysts' estimates, they failed to help market sentiment improve.
There won't be any macroeconomic data releases in the remainder of the day and month-end flows could cause market volatility to increase.
Technical levels to watch for