AUD/USD steadies around 0.7370, looks to close fourth week in the red

• AUD/USD lost its traction after edging higher toward 0.7400.
• AUD/USD looks to close fourth straight week in the negative territory.
• US Dollar Index holds near 93.00 after mixed PMI data.

The AUD/USD pair climbed toward 0.7400 during the European trading hours but lots its traction in the second half of the day. At the moment, the pair is down 0.1% on the day at 0.7370 and remains on track to close the fourth straight week in the negative territory.

USD stays resilient against its rivals after PMI data

Earlier in the day, the AUD managed to find demand amid the upbeat market mood. Although the risk-positive market environment remained intact in the second half of the day with the S&P 500 reaching a new all-time high, the greenback preserved its strength and made it difficult for AUD/USD to push higher. Currently, the US Dollar Index is up 0.12% at 92.94.

The data from the US showed on Friday that the economic activity in the manufacturing sector continued to expand at a record-setting pace in July with the Markit Manufacturing PMI improving to 63.1 from 62.1 in June. On a negative note, the Markit Services PMI declined to 59.8 and missed the market expectation of 64.8.

Commenting on the PMI surveys, "inflationary pressures and supply constraints – both in terms of labour and materials shortages - nevertheless remain major sources of uncertainty among businesses, as does the delta variant, all of which has pushed business optimism about the year ahead to the lowest seen so far this year," said Chris Williamson, Chief Business Economist at IHS Markit.

Technical levels to watch for