AUD/USD climbs to fresh 10-day high beyond 0.7300
|- AUD/USD continues to push higher during the American trading hours.
- Broad-based USD weakness is providing a boost to AUD/USD.
- Wall Street's main indexes post strong gains following Powell's remarks.
The AUD/USD pair preserved its bullish momentum during the American trading hours on Friday and reached its strongest level in 10 days at 0.7316. As of writing, the pair was up 1.1% on the day at 0.7312.
DXY falls sharply following Powell's speech
The heavy selling pressure surrounding the greenback in the second half of the day fueled AUD/USD's rally. While delivering his prepared remarks at the Jackson Hole Symposium on Friday, FOMC Chairman Jerome Powell refrained from delivering fresh hints at the timing of asset tapering and caused the USD to weaken against its rivals. As of writing, the US Dollar Index was down 0.42% on the day at 92.65.
Powell's neutral tone caused a positive shift in market sentiment and helped the AUD capitalize on risk flows. Reflecting the upbeat mood, Wall Street's three main indexes are up between 0.7% and 0.9%.
In the meantime, the data published by the US Bureau of Economic Analysis showed on Friday that the Core Personal Consumption Expenditures (PCE) Price Index stayed unchanged at 3.6% on a yearly basis in July as expected. Additionally, Personal Spending and Personal Income increase by 0.3% and 1.1%, respectively. Nevertheless, investors paid little to no attention to these figures as they released ahead of Powell's speech.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.