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


Today last price 0.7326
Today Daily Change -0.0043
Today Daily Change % -0.58
Today daily open 0.7369
Daily SMA20 0.7309
Daily SMA50 0.7359
Daily SMA100 0.7525
Daily SMA200 0.7609
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



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.


GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.


Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more