AUD/USD jumps above 0.7250 as the US dollar retreats
- DXY drops for the first time in five days, despite a decline in US stocks.
- AUD/USD rebounds sharply from monthly lows, erases weekly losses.
The AUD/USD gained momentum during the American session and jumped to 0.7255, hitting a fresh daily high boosted by a correction of the US dollar across the board.
The DXY is falling 0.20%, posting the first decline after rising during four consecutive days. The index peaked at 94.50, earlier on Thursday, the highest in a year and then pulled back to 94.15.
The greenback weakened even as US stocks are mixed and despite steady US bond yields. The US 10-year yield stands at 1.53% and the Dow Jones falls by 0.34% while the Nasdaq rises by 0.38%.
Economic data from the US showed Q2 GDP rising at 6.7% (revised from 6.6%) and initial jobless claims rising for the third consecutive week to 362K against expectations of a decline to 335K. Fed Chair Powell is speaking again at the Congress. He expects some relief on inflation during the first half of next year.
From a technical perspective, the rebound in AUD/USD so far looks like a correction but if it manages to hold above 0.7220, the bearish pressure seems alleviated. The next resistance is seen at 0.7280 and then comes the 0.7315 key level.
Technical levels
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.
