- 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|
|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.