AUD/USD reverses direction amid USD rally, drops to 0.7370 area


  • AUD/USD came under renewed bearish pressure in American session.
  • US Dollar Index rose to fresh weekly high of 92.30.
  • Fed's Clarida sees Fed announcing tapering later in the year.

The AUD/USD pair climbed to its highest level since mid-July at 0.7427 on Wednesday but changed its direction during the American trading hours. As of writing, the pair was down 0.24% on a daily basis at 0.7376.

Hawkish Fed commentary lifts DXY

Earlier in the day, the renewed USD weakness following the disappointing labour market data helped AUD/USD continue to push higher. The Automatic Data Processing (ADP) Research Institute announced that private-sector employment rose by 330,000 in July, missing the market consensus of 695,000 by a wide margin. With the initial reaction, the US Dollar Index (DXY) dropped below 92.00.

However, Fed Vice Chair Richard Clarida's comments on the policy outlook provided a boost to the greenback and the DXY reached its strongest level in a week at 92.30. 

Clarida said that he expects the pre-set conditions for raising the policy rate to be met toward the end of 2022. "I can certainly see the Fed announcing tapering later this year," Clarida added. Currently, the DXY is up 0.22% on the day at 92.27.

On Thursday, June Trade Balance will be the only data featured in the Australian economic docket. This report, however, is not expected to impact AUD/USD's movements and investors are likely to remain focused on the USD's market valuation.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.7379
Today Daily Change -0.0014
Today Daily Change % -0.19
Today daily open 0.7393
 
Trends
Daily SMA20 0.7402
Daily SMA50 0.7541
Daily SMA100 0.7628
Daily SMA200 0.7602
 
Levels
Previous Daily High 0.7409
Previous Daily Low 0.7356
Previous Weekly High 0.7415
Previous Weekly Low 0.7317
Previous Monthly High 0.7599
Previous Monthly Low 0.7288
Daily Fibonacci 38.2% 0.7389
Daily Fibonacci 61.8% 0.7377
Daily Pivot Point S1 0.7364
Daily Pivot Point S2 0.7334
Daily Pivot Point S3 0.7311
Daily Pivot Point R1 0.7416
Daily Pivot Point R2 0.7439
Daily Pivot Point R3 0.7469

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.

EUR/USD News

GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.

GBP/USD News

Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures