AUD/USD drops back to test 0.7250 as risk-off grips Europe

UK leadership challenge triggers risk-off, boosting the demand for the USD.
Headed back towards Thursday”s low at 0.7232 ahead of US industrial figures.

Dhwani Mehta FXStreet

The USD bulls staged a solid comeback amid a renewed risk-aversion wave that the gripped the European markets amid fresh UK political concerns, lifting the safe-haven US dollar at the expense of the higher-yielding Aussie.

AUD/USD: Bears taking back charge

The latest reports of the leadership challenge underway against the UK PM Theresa May added to ongoing concerns over a potential disorderly Brexit and spooked markets, with the European equities quickly paring back early gains, as the risk assets take a hit.

As a result, the Aussie is seen heading back for a test of yesterday’s low reached at 0.7232 levels while the US dollar index bounces back to 96.95, having posted daily lows at 96.77. Despite the latest leg down, the OZ currency remains supported by solid Australian employment data, with markets now expecting an RBA rate hike by mid-2019.

Attention now turns towards the sentiment on the Wall Street and the US industrial production release for fresh trading impetus on the Aussie dollar.

AUD/USD Technical Levels

AUD/USD

Overview:
    Last Price: 0.7258
    Daily change: -21 pips
    Daily change: -0.289%
    Daily Open: 0.7279
Trends:
    Daily SMA20: 0.7163
    Daily SMA50: 0.7163
    Daily SMA100: 0.7257
    Daily SMA200: 0.7456
Levels:
    Daily High: 0.73
    Daily Low: 0.7226
    Weekly High: 0.7304
    Weekly Low: 0.7183
    Monthly High: 0.724
    Monthly Low: 0.702
    Daily Fibonacci 38.2%: 0.7272
    Daily Fibonacci 61.8%: 0.7255
    Daily Pivot Point S1: 0.7237
    Daily Pivot Point S2: 0.7195
    Daily Pivot Point S3: 0.7164
    Daily Pivot Point R1: 0.7311
    Daily Pivot Point R2: 0.7342
    Daily Pivot Point R3: 0.7384

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.

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