AUD/USD hits fresh lows under 0.7700 amid risk aversion

AUD hit by risk aversion, reverses sharply.
DOW JONES drops almost 2% and US bonds rise.
US Dollar recovers most of yesterday’s losses.

Matías Salord FXStreet

The AUD/USD pair is falling more than 70 pips on Thursday and it has erased yesterday’s gains. Price is back below 0.7700, under the levels it had before the release of the FOMC statement.

During the US session the Aussie was affected by risk aversion. AUD/USD dropped to 0.768. It remains under 0.7700, facing bearish pressure and close to 0.7669, the 2018 low.

FOMC gains erased by AU jobs data and risk aversion

On Wednesday, AUD/USD jumped to 0.7784 following the decision of the Federal Reserve and Powell’s press conference. The rise was boosted by a decline of the greenback across the board. Today the US dollar is recovering ground.

The Aussie is among the worst performers. During the Asian session, the Australian jobs report showed lower-than-expected numbers and weakened the pair. The slide continued into the US session on the back of the stronger USD and amid risk aversion.

Equity prices in the US are falling sharply amid concerns of a global trade war as the Trump’s administration get ready to announce trade restraints from China.

AUD/USD levels to watch

To the downside, immediate support is seen at 0.7670 followed by 0.7635 and 0.7600. On the upside, resistance levels might be seen at 0.7725 (Mar 19 high), 0.7755 and 0.7795.

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.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.