AUD/USD rebounds from weekly lows back above 0.6700

• US Dollar Index drops but commodity currencies are under pressure on Friday.
• Key data ahead: US S&P Global PMI
• AUD/USD is down for the day, holds above 0.6680.

The AUD/USD pair bottomed during the European session at 0.6678, the lowest level since April 12, but quickly rose above 0.6680. Recently it climbed back above 0.6700, and it continues to trim losses ahead of important US economic data.

At 13:45 GMT, the preliminary April US S&P Global PMI will be released. Those numbers will be relevant for market participants looking for clues about the economic outlook.

Ahead of the meeting, the US Dollar Index is falling 0.10%, trading at 106.80. The slide is driven by a rebound in EUR/USD and an extension of the decline in USD/JPY. The commodity currencies block is falling on Friday.

Earlier, the April PMI from Australia showed the Manufacturing Index at 48.1, below 49.1 in March, and the Service Index at 52.6, up from 48.6 in March, the highest reading since June 2022.

Short-term outlook

The pair is holding above the 0.6680 support area. If it consolidates below, the outlook would weaken for the Aussie. While above, AUD/USD is seen moving sideways.

On the upside, the Aussie needs to rise and hold above 0.6750, to strengthen the outlook. Above, the next resistance area stands at 0.6775, and the last defense to 0.6800.

Technical levels