AUD/USD drops to 0.7030 area as USD starts to gather strength

  • AUD/USD struggles to stage a convincing recovery on Friday.
  • US Dollar Index rose above 94.50 ahead of American session.
  • Risk-aversion helps greenback find demand as a safe-haven.

The AUD/USD pair closed the first four days of the week in the negative territory. Although the pair staged a rebound and rose to a daily high of 0.7086 on Friday, it reversed its course on broad-based USD strength and was last seen losing 0.2% on the day at 0.7030.

USD capitalizes on safe-haven flows

On Thursday, a decisive recovery witnessed in Wall Street's main indexes in the second half of the session made it difficult for the safe-haven greenback to continue to outperform its rivals.

However, the risk-off market environment, as reflected by the sharp decline seen in European stocks, is helping the US Dollar Index (DXY) push higher on Friday. Confirming the dismal mood, the S&P 500 futures are down 0.8% on the day. At the moment, the DXY is gaining 0.26% at 94.58.

Later in the day, Durable Goods Orders for August will be the only data featured in the US economic docket. Unless there is a large divergence between the actual print and the market consensus of 1.5%, the risk perception is likely to remain the primary driver of AUD/USD's action.

New York Federal Reserve President John Williams is scheduled to deliver a speech at 1910 GMT as well.

Technical levels to watch for


Today last price 0.7035
Today Daily Change -0.0011
Today Daily Change % -0.16
Today daily open 0.7046
Daily SMA20 0.7267
Daily SMA50 0.7203
Daily SMA100 0.7002
Daily SMA200 0.6773
Previous Daily High 0.7086
Previous Daily Low 0.7016
Previous Weekly High 0.7346
Previous Weekly Low 0.7254
Previous Monthly High 0.7416
Previous Monthly Low 0.7076
Daily Fibonacci 38.2% 0.7042
Daily Fibonacci 61.8% 0.7059
Daily Pivot Point S1 0.7012
Daily Pivot Point S2 0.6979
Daily Pivot Point S3 0.6942
Daily Pivot Point R1 0.7083
Daily Pivot Point R2 0.712
Daily Pivot Point R3 0.7154



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