-
AUD/USD bear move is driven by the US dollar demand which stems from rising US yields.
-
There is no macroeconomic data coming from Australia and New Zealand as stock markets and financial institutions are closed on April 25 for the Anzac Day.
The AUD/USD is trading at around 0.7560 down 0.57% while the aussie is under heavy pressure as the US dollar is taking center stage in Wednesday’s trading.
The AUD/USD bears are driving the pair down for the fifth day in a row with very limited pullbacks to the upside which do not exceed 20 or 40 pips. The bearish slide is driven by USD strength. The 10-year Treasury yields are on a bull run and trading above the 3.00% mark on Wednesday. Those levels have not been reached since January 2014. The recent US bond yields jump is attributed to rising inflation and rate hike expectations.
Further collaborating to the downside on the commodity-linked currency, AUD, is the downtick in gold which is trading in the $1,320 region and the pullback in US stocks which are correlated to the AUD.
Friday is the most important day for the pair as investors will closely pay attention to the Personal Consumption Expenditures Index (PCE) which is the favorite inflation indicator of the Federal Reserve Bank. A strong deviation to the upside can give an additional boost to the US dollar as investors will be confident that more rate hikes will be coming. On the same day, the US Gross Domestic Product (GDP) will also be the focus of attention for market participants. The GDP is expected to increase 0.4% quarterly and advancing 1.4% on an annual basis. A strong reading will reinforce the view that the US economy is expanding and that hiking interest rates is indeed justified.
AUD/USD daily chart
-636602618592597867.png)
The trend is bearish. Support is seen at the 0.7550 psychological level and the 0.7500 handle. Resistance is seen at 0.7600 and 0.7700 handles.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to hold above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.