Australian Dollar: AUD/USD plummets below 0.6600 as mood dampened, buoyant US Dollar

  • AUD/USD plunges below 0.6600 as sentiment dampened.
  • Recently, China’s Covid-19 outbreak kept investors worried about speculations that the Government would reimpose restrictions.
  • Traders’ focus turns to Reserve Bank of Australia Governor Philippe Lowe speaking on Tuesday.

The Australian Dollar (AUD) fell for the fourth straight day in a risk-off mood after news broke that the latest China Covid-19 outbreak caused three deaths during the weekend, as authorities eased some restrictions. Hence, speculators seeking safety bolstered the US Dollar (USD) amid growing concerns about reimposing lockdowns. The AUD/USD is trading at 0.6590 after hitting a daily high of 0.6683.

Sentiment bolstered the US Dollar on safe-haven flows

Wall Street denotes investors’ worries about China being hit by a Covid outbreak, extending its losses in the day. A light economic calendar in the United States (US) witnessed the Chicago National Activity index falling to negative territory in October, to -0.05 from 0.17 in September. Although the US October CPI and PPI reports were softer-than-expected, a solid US Retail Sales report increased the chances that the Fed will continue tightening monetary conditions.

During the last week, a slew of Federal Reserve (Fed) officials expressed the need to ease the pace of interest rate hikes but mentioned that they’re not pausing. St. Louis Fed President James Bullard said rates are not “sufficiently restrictive” and foresees the Federal Funds rate (FFR) to peak at around 5% to 6%.

The Atlanta Fed President Raphael Bostic noted that the supports slowing the rhythm of interest-rate increases and foresees 75 to 100 bps additional tightening to the FFR.

Elsewhere, the US Dollar Index (DXY), a measure of the buck’s value against a basket of six currencies, climbs sharply by 0.80%, at 107.823, a headwind for the Australian Dollar.

Aside from this, an absent Australian economic calendar leaves AUD/USD traders leaning on market sentiment, battered by China‘s news. It should be noted that the People’s Bank of China (PBoC) kept the Loan Prime Rate (LPR) unchanged at 3.65%, while Iron Ore prices added another piece of the puzzle that is weighing on the Australian Dollar.

Ahead into the week, the Reserve Bank of Australia (RBA) Governor Philip Lowe will cross wires on Tuesday, delivering a speech at the Annual Committee for Economic Development of Australia Dinner. He is expected to reiterate the RBA’s commitment to tame inflation, though it is not likely to rock the boat. On the US front, the economic calendar will feature the Richmond Fed Manufacturing Index alongside further Fed speaking.

AUD/USD Key Technical Levels


Today last price 0.6595
Today Daily Change -0.0075
Today Daily Change % -1.12
Today daily open 0.667
Daily SMA20 0.6513
Daily SMA50 0.6495
Daily SMA100 0.6695
Daily SMA200 0.6947
Previous Daily High 0.673
Previous Daily Low 0.6661
Previous Weekly High 0.6798
Previous Weekly Low 0.6634
Previous Monthly High 0.6548
Previous Monthly Low 0.617
Daily Fibonacci 38.2% 0.6688
Daily Fibonacci 61.8% 0.6704
Daily Pivot Point S1 0.6644
Daily Pivot Point S2 0.6618
Daily Pivot Point S3 0.6575
Daily Pivot Point R1 0.6713
Daily Pivot Point R2 0.6757
Daily Pivot Point R3 0.6783



Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD: Euro recovers ground but not re-attracting bulls yet Premium

EUR/USD: Euro recovers ground but not re-attracting bulls yet

The EUR/USD rose on Monday toward the 1.0800 area, recovering some of Friday’s slide, supported by an improvement in market sentiment, amid easing concerns on the banking sector.


GBP/USD closes in on 1.2300 as mood improves

GBP/USD closes in on 1.2300 as mood improves

GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.


Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium

Gold: XAU/USD pared losses and consolidates around $1,950.00

Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.

Gold News

MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high

MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high

Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew. 

Read more

US Consumer Confidence Preview: No good news for Americans Premium

US Consumer Confidence Preview: No good news for Americans

The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February. 

Read more