AUD/USD clings to modest gains, holds comfortably above 0.6700 mark
- AUD/USD manages to regain some positive traction on the last day of the week.
- Coronavirus concerns, bullish tone around the USD seemed to cap the upside.
- Investors now look forward to the US economic docket for some trading impetus.
The AUD/USD pair extended its sideways consolidative price action on Friday and remained confined in a range, comfortably above the 0.6700 round-figure mark.
Following the previous session's pullback from weekly tops, the pair managed to regain some positive traction on the last trading day of the week. Some stability in the global financial markets extended some support to perceived riskier currencies, including the Australian dollar.
The upside is likely to remain capped
However, a combination of negative forces held investors from placing any aggressive bullish bets and kept a lid on any strong follow-through. Renewed concerns over the economic impact of the deadly coronavirus continued undermining demand for the China-proxy aussie.
On the other hand, the US dollar stood tall near multi-month tops, above the 99.00 round-figure mark, and seemed rather unaffected by a modest pullback in the US Treasury bond yields, which further collaborated toward capping any meaningful upside for the major.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly retail sales figures and the Michigan Consumer Sentiment Index, which might influence the USD price dynamics and produce some short-term trading opportunities.
Technical levels to watch