AUD/USD loses recovery momentum, drops to fresh daily low below 0.7330


  • AUD/USD turned south following a rebound in early American session.
  • US Dollar Index regained its traction after dropping on US CPI data.
  • Wall Street's main indexes turned negative on the day after opening higher.

The AUD/USD pair staged a rebound in the early American session and climbed above 0.7360 fueled by the broad-based USD weakness. However, the pair lost its momentum and quickly retraced its rally. As of writing, AUD/USD was trading at a fresh daily low of 0.7328, losing 0.5% on a daily basis.

USD capitalizes on risk-off flows

Earlier in the session, the data published by the US Bureau of Labor Statistics revealed that inflation, as measured by the Core Consumer Price Index (CPI), declined to 4% in August from 4.3% in July. This print came in lower than the market expectation of 4.2% and triggered a USD selloff.

However, the negative shift witnessed in market sentiment helped the greenback regather its strength and caused AUD/USD to turn south. The US Dollar Index, which fell to 92.32 after CPI data, is currently virtually unchanged on the day at 92.56.

US Inflation Quick Analysis: Team Transitory wins, dollar loses, why the trend may extend.

Reflecting the souring market mood, Wall Street's main indexes are losing between 0.6% and 0.3% on the day.

On Wednesday, the Westpac Consumer Confidence data for September and the HIA New Home Sales figures for August will be featured in the Australian economic docket. 

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7326
Today Daily Change -0.0043
Today Daily Change % -0.58
Today daily open 0.7369
 
Trends
Daily SMA20 0.7309
Daily SMA50 0.7359
Daily SMA100 0.7525
Daily SMA200 0.7609
 
Levels
Previous Daily High 0.7377
Previous Daily Low 0.7336
Previous Weekly High 0.7469
Previous Weekly Low 0.7345
Previous Monthly High 0.7427
Previous Monthly Low 0.7106
Daily Fibonacci 38.2% 0.7361
Daily Fibonacci 61.8% 0.7351
Daily Pivot Point S1 0.7344
Daily Pivot Point S2 0.7319
Daily Pivot Point S3 0.7302
Daily Pivot Point R1 0.7385
Daily Pivot Point R2 0.7402
Daily Pivot Point R3 0.7427

 

 

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