- US dollar rises across the board into the London fix.
- Greenback trims weekly losses late on Friday.
- AUD/USD back to negative for the week, drops toward 0.7350.
The AUD/USD broke under 0.7365 during the American session and fell to 0.7343, reaching a fresh two-day low. The key driver has been a strong US dollar across the board. The greenback gained momentum into the London fix.
The DXY eared losses and is up by 0.30% at 92.15, even as US yields move further to the downside. The 10-year yield stands at 1.22%, about to test the weekly low. The key economic report of the US was the core PCE deflator, considered a critical inflation number for the Federal Reserve. It rose 0.4% in June, against expectations of a 0.6% increase.
From the Fed to the RBA
After the Fed, now the focus turns to the Reserve Bank of Australia (RBA) that next week will have its monetary policy meeting. “We think policymakers in Sydney (a city that is about to spend the whole month of August in lockdown) will not make any amendment to the current policy stance after the adjustments announced in early July. The jump in inflation to 3.8% in 2Q should be dismissed as transitory, and the Bank will likely wait for more indications from the labour market before reacting on the policy side”, wrote analysts at ING. They add that the recent spread of the Delta Variant is likely another reason “why the RBA should revert from sounding more hawkish or upbeat on the recovery at this meeting.”
The Aussie is about to end the week as the worst performer across the G10 space, hit by monetary policy divergence. AUD/USD failed to hold to gains and on Friday to remain above 0.7400; it is on its way to the fifth consecutive negative weekly result. AUD/NZD heads for the lowest weekly close since November of last year.
|Today last price||0.7351|
|Today Daily Change||-0.0043|
|Today Daily Change %||-0.58|
|Today daily open||0.7394|
|Previous Daily High||0.7415|
|Previous Daily Low||0.7358|
|Previous Weekly High||0.7417|
|Previous Weekly Low||0.7288|
|Previous Monthly High||0.7794|
|Previous Monthly Low||0.7477|
|Daily Fibonacci 38.2%||0.7393|
|Daily Fibonacci 61.8%||0.738|
|Daily Pivot Point S1||0.7364|
|Daily Pivot Point S2||0.7333|
|Daily Pivot Point S3||0.7307|
|Daily Pivot Point R1||0.742|
|Daily Pivot Point R2||0.7446|
|Daily Pivot Point R3||0.7477|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.