AUD/USD reverses and tumbles below 0.6700 as Dollar soars
|- US Dollar rises across the board after US data and amid risk aversion.
- US Q3 GDP revised from 2.9% to 3.2%.
- AUD/USD again rejected from above the 20-day SMA.
The AUD/USD dropped further during the American session and printed a fresh daily low at 0.6672. Earlier on Thursday is traded at 0.6767, the highest level in a week. The move lower took place amid a stronger US Dollar across the board.
The greenback gained momentum following the release of US economic data. The economy expanded during the third quarter at an annualized rate of 3.2% above the 2.9% of the previous estimate. Price indicators of the Q3 GDP report were also revised higher. Initial Jobless Claims rose to 216K below the 222K of market consensus while Continuing Claims dropped for the first time in weeks from 1.678 million to 1.672 million.
In Wall Street, the Dow Jones is falling by 1.35% and the Nasdaq tumbles by 2.55%, on another volatile session. US yields rose sharply after US data, helping the Dollar and then pulled back.
The AUD/USD has fallen by 1.45% from the top of the day, erasing all daily gains. Price was rejected from above the 20-day Simple Moving Average (today at 0.6740) that is turning south. A daily close well above would be a positive technical development for the Aussie. While below that level, risks are biased to the downside. The next strong support could be seen around 0.6650.
AUD/USD daily chart
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