AUD/USD hits fresh lows under 0.7700 amid risk aversion
|- AUD hit by risk aversion, reverses sharply.
- DOW JONES drops almost 2% and US bonds rise.
- US Dollar recovers most of yesterday’s losses.
The AUD/USD pair is falling more than 70 pips on Thursday and it has erased yesterday’s gains. Price is back below 0.7700, under the levels it had before the release of the FOMC statement.
During the US session the Aussie was affected by risk aversion. AUD/USD dropped to 0.768. It remains under 0.7700, facing bearish pressure and close to 0.7669, the 2018 low.
FOMC gains erased by AU jobs data and risk aversion
On Wednesday, AUD/USD jumped to 0.7784 following the decision of the Federal Reserve and Powell’s press conference. The rise was boosted by a decline of the greenback across the board. Today the US dollar is recovering ground.
The Aussie is among the worst performers. During the Asian session, the Australian jobs report showed lower-than-expected numbers and weakened the pair. The slide continued into the US session on the back of the stronger USD and amid risk aversion.
Equity prices in the US are falling sharply amid concerns of a global trade war as the Trump’s administration get ready to announce trade restraints from China.
AUD/USD levels to watch
To the downside, immediate support is seen at 0.7670 followed by 0.7635 and 0.7600. On the upside, resistance levels might be seen at 0.7725 (Mar 19 high), 0.7755 and 0.7795.
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