The US Dollar Index might be dropping, but the commodity currencies are feeling the pressure today. There’s some key data coming up, so buckle up! The US S&P Global PMI report is on the horizon and all eyes are on the economic outlook.

Now let’s talk about our Aussie friend. The AUD/USD pair may have hit a low during the European session at 0.6678 (ouch!), but it quickly bounced back up above 0.6680. Recently, it even managed to climb back above 0.6700, and it’s still trimming losses ahead of the important US economic data release.

At 13:45 GMT, we’ll get our hands on the preliminary April US S&P Global PMI numbers. These figures will be highly relevant to market participants who are looking for clues about the future economic landscape.

The US Dollar Index is currently down 0.10%, trading at 106.80. The slide is driven by a resurgence in EUR/USD and an extension of the decline in USD/JPY. Meanwhile, the commodity currencies block is taking a hit on Friday.

Earlier today, the April PMI from Australia showed the Manufacturing Index at 48.1, which is lower than March’s 49.1. But there’s some good news too – the Service Index is up from 48.6 in March to 52.6, the highest reading since June 2022.

So what’s the short-term outlook for the AUD/USD pair? Well, it’s currently holding above the 0.6680 support area. If it falls below this level, the outlook would weaken for the Aussie. However, while it remains above, AUD/USD is expected to move sideways.

If the Aussie wants to strengthen its outlook, it needs to rise and hold above 0.6750. Above that level, the next resistance area is at 0.6775, and the last line of defense is at 0.6800.

We hope you found this article informative and fun! Don’t forget to check out our other blogs on Forex trading and stay tuned for more updates.