AUD/USD plummets below 0.7750 on renewed USD strength


  • AUD/USD made a sharp U-turn in the late American session.
  • US Dollar Index rose to a fresh monthly high above 91.40.
  • 10-year US Treasury bond yield shot higher after FOMC Chairman Powell's remarks.

The AUD/USD pair came under strong bearish pressure in the late American session and lost more than 60 pips in the last hour. As of writing, the pair was down 0.45% on a daily basis at 0.7742.

DXY advances toward 90.50

The renewed USD strength seems to be weighing heavily on AUD/USD. While speaking at an event organized by the Wall Street Journal, FOMC Chairman Jerome Powell said that they would be concerned "by a persistent tightening of financial conditions broadly" and refrained from touching on the bond market turmoil.

Powell Quick Analysis: Markets set to suffer for two more weeks as Fed mostly dismissed bond rout.

With the initial market reaction, the 10-year US Treasury bond yield rose sharply and provided a boost to the greenback. At the moment, the US Dollar Index is trading at its highest level in a month at 90.43, rising 0.53% on a daily basis.

In the early trading hours of the Asian session, the AiG Performance of Services Index will be featured in the Australian economic docket but investors are likely to remain focused on the US T-bond yields and the USD's market valuation.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7745
Today Daily Change -0.0038
Today Daily Change % -0.49
Today daily open 0.7783
 
Trends
Daily SMA20 0.7781
Daily SMA50 0.7729
Daily SMA100 0.7519
Daily SMA200 0.7304
 
Levels
Previous Daily High 0.7838
Previous Daily Low 0.777
Previous Weekly High 0.8008
Previous Weekly Low 0.7692
Previous Monthly High 0.8008
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7796
Daily Fibonacci 61.8% 0.7812
Daily Pivot Point S1 0.7757
Daily Pivot Point S2 0.773
Daily Pivot Point S3 0.7689
Daily Pivot Point R1 0.7824
Daily Pivot Point R2 0.7865
Daily Pivot Point R3 0.7892

 

 

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