AUD/USD recovers modestly, consolidates weekly losses

AUD/USD is marginally higher on Friday, still headed toward the third weekly decline in a row. The pair bottomed at 0.7367 (4-month low), before the release of the NFP report and then bounced to the upside. The recovery was capped below 0.7420. 

The pair is trading at 0.7410/15,  75 pips below the level it closed a week ago. The Aussie is about to post the lowest weekly close since early January. The weekly chart points to the downside taking into account technical factors. Price moved clearly below the 20-WMA and Momentum fell under the 100 line. 

On a wider perspective, two relevant support levels could be seen at 0.7340 and then around 0.7150 (June and December lows). 

If the Aussie manages to rise back above 0.7500, it could remove the short-term bearish pressure and gain support for a consolidation or a recovery. 

Losing ground despite DXY weakness

The Aussie was the worst performer during the week and remains under pressure affected by many factors, that include the decline in commodity prices, some warnings from the RBA and risks from China. 

The decline in the AUD/USD pair has been taking place despite a weak greenback. The US dollar index fell on Friday below 98.50 hitting the lowest level since November.