AUD/USD breaches 0.72 for the first time since Nov 2020, King dollar dominates

AUD/USD sellers extend control as 0.7200 caves in.
Dollar’s strength, risk-aversion knocks off the aussie.
Upbeat Australian jobs data ignored amid covid jitters.

Dhwani Mehta FXStreet

The US dollar bulls remain unabated so far this Thursday, knocking off AUD/USD below the 0.7200 for the first time since November 2020.

The July Fed meeting’s minutes ramped up tapering expectations for the final quarter of this year, strengthening the recent bullish momentum in the US dollar across its main peers.

At the time of writing, the aussie is battling 0.7201, losing 0.41% on the day while falling for the fourth straight day.

The AUD bulls face a double whammy, with the King dollar dominating the market board on one side while on the other hand, coronavirus fears keep intensifying and dent the appetite for the riskier assets such as the aussie.

According to Bloomberg, Australia sees the worst day of pandemic amid delta outbreak, with 681 new cases recorded in New South Wales (NSW). Melbourne endures its sixth lockdown since the pandemic began.

The covid jitters and the dollar’s strength will continue to give a hard time to AUD buyers, testing their resilience ahead of the US weekly Jobless Claims.

AUD/USD technical levels

The pair remains exposed to the 0.7180 support and then to the 0.7000 psychological magnet. On the flip side, any bounce may target July’s low of 0.7288 and the 0.7300 mark.

AUD/USD additional levels to consider

AUD/USD

Overview
Today last price	0.7200
Today Daily Change	-0.0029
Today Daily Change %	-0.40
Today daily open	0.7232

Trends
Daily SMA20	0.7355
Daily SMA50	0.7454
Daily SMA100	0.7592
Daily SMA200	0.7611

Levels
Previous Daily High	0.7271
Previous Daily Low	0.7228
Previous Weekly High	0.739
Previous Weekly Low	0.7315
Previous Monthly High	0.7599
Previous Monthly Low	0.7288
Daily Fibonacci 38.2%	0.7244
Daily Fibonacci 61.8%	0.7255
Daily Pivot Point S1	0.7216
Daily Pivot Point S2	0.72
Daily Pivot Point S3	0.7173
Daily Pivot Point R1	0.7259
Daily Pivot Point R2	0.7286
Daily Pivot Point R3	0.7302

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.