• AUD/USD comes under renewed selling pressure on Thursday amid resurgent USD demand.
  • Aggressive Fed rate hike bets trigger a fresh leg up in the US bond yields and lift the buck.
  • The risk-off impulse further contributes to driving flows away from the risk-sensitive aussie.

The AUD/USD pair recovers a few pips from the daily low and climbs to the 0.6480-0.6485 region during the early North American session, still down nearly 0.60% for the day.

The US dollar regains positive traction on Thursday and prompts fresh selling around the AUD/USD pair, forcing spot prices to reverse a part of the overnight recovery move from its lowest level since April 2020. The recent hawkish comments from a slew of FOMC members reaffirm expectations that the US central bank will continue to hike interest rates at a faster pace to curb inflation. This, in turn, triggers a fresh leg up in the US Treasury bond yields and helps revive demand for the greenback.

Apart from this, the risk-off impulse offers additional support to the safe-haven buck and further contributes to driving flows away from the risk-sensitive aussie. The prospects for a more aggressive policy tightening by the Fed, along with growing worries about a deeper global economic downturn, continue to temper investors' appetite for riskier assets. This is evident from a sea of red across the global equity markets, which tends to boost demand for the traditional safe-haven greenback.

On the economic data front, the final US GDP report showed that the world's largest economy contracted by 0.6% during the second quarter, matching the previous estimate. Separately, the US Weekly Initial Jobless Claims fell from 209K to 193K during the week ended September 22. The data, however, did little to provide any meaningful impetus. That said, a pickup in demand for the British pound exerts some pressure on the greenback and lends some support to the AUD/USD pair. The fundamental backdrop, however, remains tilted firmly in favour of bearish traders.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6478
Today Daily Change -0.0045
Today Daily Change % -0.69
Today daily open 0.6523
 
Trends
Daily SMA20 0.6696
Daily SMA50 0.6853
Daily SMA100 0.6913
Daily SMA200 0.7084
 
Levels
Previous Daily High 0.6531
Previous Daily Low 0.6363
Previous Weekly High 0.6748
Previous Weekly Low 0.6512
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6467
Daily Fibonacci 61.8% 0.6427
Daily Pivot Point S1 0.6414
Daily Pivot Point S2 0.6305
Daily Pivot Point S3 0.6246
Daily Pivot Point R1 0.6581
Daily Pivot Point R2 0.664
Daily Pivot Point R3 0.6749

 

 

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