AUD/USD closes in on 0.7700 as USD continues to gather strength ahead of weekend

  • AUD/USD is losing more than 2% on Friday.
  • US Dollar Index continues to push higher as T-bond yields recover from daily lows.
  • Core PCE Price Index in US stayed unchanged at 1.5% in January.

After recovering toward 0.7800 in the early American session, the AUD/USD pair lost its traction and dropped to its lowest level in more than two weeks at 0.7711. As of writing, the pair was down 2.01% on a daily basis at 0.7715.

DXY extends rally toward 91.00

The unabated USD strength continues to weigh on AUD/USD ahead of the weekend. Although the US Dollar Index (DXY) erased a portion of its daily gains earlier in the day with the US Treasury bond yields staging a deep correction, it reversed its direction and jumped to its highest level in a week at 90.82.

A rebound witnessed in T-bond yields seems to be providing a boost to the USD. Currently, the yield on the benchmark 10-year reference, which lost as much as 4% earlier in the day, is down 1.8% and the DXY is up 0.75% at 90.80.

The data published by the US Bureau of Economic Analysis showed on Friday that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, remained unchanged at 1.5% on a yearly basis in January. Nevertheless, this reading failed to trigger a meaningful market reaction.

Other data showed that Personal Income and Personal Spending increased by 10% and 2.4%, respectively. Finally, the University of Michigan's Consumer Sentiment Index arrived at 76.8 in February's final reading, compared to analysts' estimate of 76.5.

Technical levels to watch for


Today last price 0.7727
Today Daily Change -0.0138
Today Daily Change % -1.75
Today daily open 0.7865
Daily SMA20 0.7751
Daily SMA50 0.7713
Daily SMA100 0.7496
Daily SMA200 0.728
Previous Daily High 0.8008
Previous Daily Low 0.7859
Previous Weekly High 0.7878
Previous Weekly Low 0.7724
Previous Monthly High 0.782
Previous Monthly Low 0.7592
Daily Fibonacci 38.2% 0.7916
Daily Fibonacci 61.8% 0.7951
Daily Pivot Point S1 0.7813
Daily Pivot Point S2 0.7761
Daily Pivot Point S3 0.7663
Daily Pivot Point R1 0.7962
Daily Pivot Point R2 0.806
Daily Pivot Point R3 0.8112



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.

Feed news

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1900 as dollar rebounds amid risk-aversion

EUR/USD is trading below 1.1900, retreating further from two-week highs of 1.1927 amid resurgent haven demand for the US dollar whilst the Treasury yields recover. Concerns about vaccines in Europe outweigh the Fed's dovish message.


GBP/USD struggles around 1.37 on dollar strength, Brexit and covid concerns

GBP/USD is trying to hold onto 1.37, trading near the March lows. The US dollar is rebounding the from dovish Fed-induced blow. Concerns about Britain's vaccine supplies and Brexit-related issues are weighing on sentiment.


XAU/USD trades as a function of yields, bounces at $1730 support

Spot gold (XAU/USD) prices have seen choppy price action this Friday, dropping from Asia Pacific levels in the upper-$1750s to lows around $1730, before recovering back to the mid-$1740s in recent trade. 

Gold News

Cardano’s Alonzo update might catalyze ADA price for 78% upswing

IOHK revealed Alonzo, the next protocol update for the Cardano blockchain. The upgrade will build on top of the recent releases like Mary, Allegra and so on to bring smart contract capabilities. ADA price falters but holds up as buyers eye a 78% bull run to record levels.

Read more

S&P 500: High high and away, it's the running of the bulls as PPI Freezes up

Up up and away as bulls push more record highs in equity markets. In the short term nothing, it appears, is clouding the picture. Or is it! The ten year yield reawakens with a fairly sharp rise back toward 1.7%.

Read more