AUD/USD drops to 20-day lows as US Dollar soars

Aussie accelerates slide versus US Dollar as downside streak continues.
AUD/USD heads fro lowest close in three weeks despite rising equity prices.

Matías Salord FXStreet

The AUD/USD pair accelerated to the downside during the American session and extended losses. The pair dropped to 0.7080 hitting the lowest level since April 3. As of writing, trades at 0.7087, down 45 pips for the day, about to post the fourth decline in a row and the lowest close in three weeks.

Risk aversion in currencies, not is stocks

The move lower took place amid a rally of the US Dollar across the board. Measured by the DXY it is testing 2019 highs around the 97.70 zone. A break higher would show prices not seen since June 2017.

The greenback is also rising against Emerging market currencies while it is flat versus the yen. The mentioned flows are associated with risk aversion. But in Wall Street, equity prices are higher. The DOW JONES is up 0.49% and the NASDAQ gains 1.01%. The good tone in stocks is not seen in the currency market.

Sentiment around the US Dollar is likely to continue to dominate price action in AUD/USD, at least until Wednesday’s Asian session when CPI data from Australia will be released.

Levels to watch

AUD/USD

Overview
Today last price	0.7089
Today Daily Change	-0.0045
Today Daily Change %	-0.63
Today daily open	0.7134

Trends
Daily SMA20	0.7129
Daily SMA50	0.7113
Daily SMA100	0.7132
Daily SMA200	0.7187

Levels
Previous Daily High	0.7155
Previous Daily Low	0.7128
Previous Weekly High	0.7206
Previous Weekly Low	0.7136
Previous Monthly High	0.7168
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7138
Daily Fibonacci 61.8%	0.7144
Daily Pivot Point S1	0.7123
Daily Pivot Point S2	0.7112
Daily Pivot Point S3	0.7096
Daily Pivot Point R1	0.715
Daily Pivot Point R2	0.7166
Daily Pivot Point R3	0.7177

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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