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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

AUD/USD

Overview
Today last price0.7224
Today Daily Change0.0050
Today Daily Change %0.70
Today daily open0.7174
 
Trends
Daily SMA200.7318
Daily SMA500.732
Daily SMA1000.7465
Daily SMA2000.7592
 
Levels
Previous Daily High0.7265
Previous Daily Low0.717
Previous Weekly High0.7317
Previous Weekly Low0.7219
Previous Monthly High0.7427
Previous Monthly Low0.7106
Daily Fibonacci 38.2%0.7206
Daily Fibonacci 61.8%0.7229
Daily Pivot Point S10.7141
Daily Pivot Point S20.7107
Daily Pivot Point S30.7045
Daily Pivot Point R10.7236
Daily Pivot Point R20.7298
Daily Pivot Point R30.7332

Author

Matías Salord

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.

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