FxWirePro: AUD/USD gains modestly as softer U.S. data pressures greenback

• AUD/USD edged higher on Friday as softer U.S. economic data pressured the U.S. dollar, providing modest support to the Australian dollar.

• U.S. July PPI rose 4.7% year-on-year, below the 4.9% market forecast, while initial jobless claims came in at 209k versus expectations of 202k. The data pointed to somewhat softer inflation and labor-market conditions, weighing on the dollar.

• Meanwhile, the U.S.-Iran standoff over the Strait of Hormuz remains unresolved, with no clear breakthrough in sight. Continued geopolitical uncertainty could keep volatility elevated across commodity currencies, including the Australian dollar.

• AUD/USD is roughly flat on the week, with the 0.7090 resistance zone remaining a key level. A sustained break above this area could improve the medium-term outlook, while repeated failures could keep the pair range-bound.

• Investors are now awaiting U.S. July retail sales on Friday, with the Reuters consensus pointing to a modest 0.1% month-on-month increase.

• Immediate resistance is located at 0.7090 (50%fib), any close above will push the pair towards 0.7113(Higher BB).

• Support is seen at 0.7022(SMA20) and break below could take the pair towards 0.7004( (38.2%fib).

 Recommendation: Good to buy around 0.7050, with stop loss of 0.7000 and target price of 0.7100