AUD/USD retreats from daily highs, clings to 0.7100 area

FXStreet (Córdoba) - AUD/USD is staging a comeback from multi-week lows on Friday following three consecutive daily losses, as the greenback softens across the board amid disappointing US data.

AUD/USD bounced off the 0.7065 zone and climbed to a high of 0.7136 before finding resistance and entering a sideways phase. At time of writing, the pair is trading at 0.7098, still up 0.38% on the day.

Recent US releases weighed on the USD as the Fed said it will aseess data to determine if a rate hike is appropriate in december. On Thursday data showed US GDP grew 1.5% in the third quarter, below 1.6% expected. On Friday, US consumer income and spending came in below expectations, while PCE price index, the Fed's prefered inflation measure, posted the largest drop since January (0.1%).

AUD/USD levels to watch

In terms of technical levels, next supports are seen at 0.7065 (Oct 6 & 30 low), 0.7042 (Oct 5 low) and then the 0.7000 area (psychological level/Oct 1 & 2 lows) . On the other hand, resistances could be faced at 0.7130/36 (50-day SMA/Oct 30 high), 0.7206/10 (Oct 28 high/21-day SMA) and 0.7295 (Oct 23 high).