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.
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
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.
