AUD/USD stays in the positive territory around 0.7250 ahead of Powell's speech
- AUD/USD stages a modest rebound following Thursday's decline.
- US Dollar Index continues to move sideways around 93.00.
- Investors await PCE inflation data FOMC Chairman Powell's speech.
The AUD/USD pair closed in the negative territory on Thursday but managed to erase a small portion of its losses on Friday. As of writing, the pair was up 0.23% on a daily basis at 0.7250.
Eyes on FOMC Chairman Powell's speech
Although the data from Australia revealed on Friday that Retail Sales declined by 2.7% on a monthly basis in July, compared to the market expectation for a decrease of 2.3%, AUD/USD didn't have a difficult time edging higher.
Ahead of the highly-anticipated Jackson Hole Symposium, the greenback is struggling to build on Thursday's gains, allowing AUD/USD to cling to its daily gains. The US Dollar Index, which snapped a four-day losing streak and rose 0.25%, is currently flat on the day at 93.03.
Investors will look for fresh clues regarding the timing of asset tapering when FOMC Chairman Jerome Powell delivers his speech later in the day. Several FOMC policymakers voiced their support for a reduction in asset purchases before the end of the year and if Powell's confirms that outlook, the greenback could gather strength and force AUD/USD to turn south.
Meanwhile, the US Bureau of Economic Analysis will release the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, in the early American session.
Technical levels to watch for