AUD/USD drops below 0.7700 as USD continues to gather strength


  • AUD/USD turned south after closing in the positive territory on Tuesday.
  • US Dollar Index rises above 90.50 supported by risk-off flows.
  • Investors await FOMC's policy announcements, US Durable Goods Orders data.

The AUD/USD pair stayed relatively quiet below 0.7750 during the Asian trading hours but came under strong bearish pressure ahead of the American session. As of writing, the pair was down 0.7% on the day at 0.7690.

USD capitalizes on safe-haven flows

The dismal market mood on Wednesday is helping the safe-haven greenback outperform its rivals. The US Dollar Index, which closed in the negative territory on Tuesday, is currently up 0.44% at 90.55. Reflecting the risk-averse market environment, the S&P 500 Futures are down 1.3% on the day, suggesting that Wall Street's main indexes will start the day deep in the red.

The US Census Bureau will publish the Durable Goods orders data for December. More importantly, the FOMC will announce its rate decision and publish the policy statement following the first meeting of 2021.

Previewing the FOMC event, "we expect changes to the FOMC statement to be fairly minor, consistent with no plans for policy changes anytime soon," said TD Securities analysts. "The chairman will likely remain dovish on the policy outlook in his press conference even as he expresses some optimism about growth in the year ahead—with vaccines and fiscal stimulus ultimately contributing to strength."

Earlier in the day, the data from Australia showed that the Consumer Price Index (CPI) declined to 0.9% in the fourth quarter from 1.6%. Although this reading came in slightly higher than the market expectation of 0.7%, it failed to trigger a significant market reaction.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7694
Today Daily Change -0.0056
Today Daily Change % -0.72
Today daily open 0.775
 
Trends
Daily SMA20 0.7731
Daily SMA50 0.7572
Daily SMA100 0.7374
Daily SMA200 0.714
 
Levels
Previous Daily High 0.7755
Previous Daily Low 0.7668
Previous Weekly High 0.7783
Previous Weekly Low 0.7658
Previous Monthly High 0.7743
Previous Monthly Low 0.7338
Daily Fibonacci 38.2% 0.7722
Daily Fibonacci 61.8% 0.7701
Daily Pivot Point S1 0.7694
Daily Pivot Point S2 0.7637
Daily Pivot Point S3 0.7607
Daily Pivot Point R1 0.7781
Daily Pivot Point R2 0.7811
Daily Pivot Point R3 0.7868

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD advances towards 1.2200 amid US dollar weakness

EUR/USD nears 1.2200, sitting at fresh monthly highs as reflation trade weighs on the safe-haven US dollar. However, the further upside could remain elusive amid surging Treasury yields. US stimulus news, GDP reported awaited. 

EUR/USD News

GBP/USD holds gains above 1.4150, 1.42 still in sight

GBP/USD stays on the front foot above 1.4150 ahead of Thursday’s London open. The cable benefits from broad-based US dollar weakness, as the reflation wave lifts the appetite for riskier assets. Focus on key US data.

GBP/USD News

Dogecoin on the verge of a 75% lift-off

Dogecoin price has been lull ever since the local top on February 7. However, a 20% surge due to Elon Musk’s recent endorsement has led to a breakout from a bull flag pattern. Now, the meme coin could surge 75% to record levels soon. 

Read more

XAU/USD eyes $1770 amid symmetrical triangle breakdown

XAU/USD spots symmetrical triangle breakdown on the 1H chart. RSI point south, within the bearish zone, allowing more declines. Downside more compelling amid a bunch of healthy resistance levels.

Gold news

US Dollar Index: Looks neutral/bearish near-term

DXY keeps the rangebound trading in the 90.00 region, always supported by the key 2020-2021 support line (near 89.80).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures