AUD/USD extends correction, hits fresh lows under 0.7350


  • 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.

Technical levels

AUD/USD

Overview
Today last price 0.7351
Today Daily Change -0.0043
Today Daily Change % -0.58
Today daily open 0.7394
 
Trends
Daily SMA20 0.7424
Daily SMA50 0.7563
Daily SMA100 0.7639
Daily SMA200 0.7598
 
Levels
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

 

 

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