AUD/USD plummets to near 3-week lows, sub-0.7100 level

   •  Bulls fail to capitalize on solid Aussie jobs data-led early uptick.
   •  NAB's mortgage rate hike news prompts some aggressive selling.
   •  A modest USD uptick further aggravates the ongoing downfall.

The AUD/USD pair faded Aussie jobs data-led early uptick to an intraday high level of 0.7167 and tumbled to near three-week lows in the last hour.

The pair did get a minor lift and built on the overnight modest rebound on the back of solid domestic employment details, showing that the number of employed people in December rose by 21.6K as against 18K expected and unemployment rate surprisingly ticked lower to 5.0%. 

The pair, however, failed to capitalize on the post-data up-move, rather bears took back control after a major Australian bank - National Australia Bank said it will raise the standard variable rate for owner-occupiers repaying principal and interest by 0.12% to 5.36 %.

The move comes months after Commonwealth Bank, Westpac, and ANZ imposed out-of-cycle hikes and was seen as further hurting the domestic housing market, which might force the RBA to lower interest rates and eventually weighed heavily on the Aussie. 

Meanwhile, a modest US Dollar uptick, despite a weaker tone around the US Treasury bond yields, aggravated the selling pressure and further collaborated to the pair's sharp intraday slide to sub-0.7100 level.

In absence of any major market moving economic releases from the US, a follow-through weakness, led by some fresh technical selling below the mentioned handle, now looks a distinct possibility.

Technical levels to watch

Immediate support is now pegged near the 0.7070 area, below with the downward trajectory could further get extended towards the 0.7025-20 region en-route the key 0.70 psychological mark. On the flip side, any attempted recovery might now confront immediate resistance near the 0.7120-25 region and is followed by the 0.7160-70 heavy supply zone.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: risk aversion could send it sub-1.1180

EUR/USD capped by a critical Fibonacci resistance for two weeks in-a-row. The American dollar has closed the week on a high note as hopes for significant rate cuts faded.


GBP/USD: bears to retake control on a break below 1.2475

Renewed demand for the greenback has resulted in the GBP/USD pair giving back half of its Thursday’s gains at the end of the week, with the pair closing it just above the 1.2500 figure.


USD/JPY: bearish case firmer once below 107.20

The USD/JPY pair flirted with the 108.00 level by the end of the week on renewed demand for the greenback but retreated sharply from the level to settle at around 107.70.


Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more