AUD/USD slides to fresh monthly lows on broad US dollar strength, targets 0.7200

AUD/USD prints a fresh three-week low at 0.7262.
Downbeat market sentiment boosts the demand for US dollars.
AUD/USD awaits the FOMC meeting to resume its direction.

Christian Borjon Valencia FXStreet

During the European session, the AUD/USD reached a peak of 0.7321. However, as market sentiment deteriorated and American traders got to their desks, the AUD/USD dipped below 0.7300, pushing the pair to a three-week low at 0.7262. The AUD/USD is trading at 0.7284 at the time of writing, down 0.05% on the day.

US stocks fall while the greenback rises, underpinned by higher bond yields

In the New York session, US stock indexes are posting losses between 0.32% and 1.21%. The US Dollar Index is on the right foot, rising 0.41% on the day, currently at 93.24, underpinned by higher yields. The 10-year benchmark rate is at 1.368%, up to three basis points.

In the US economic docket, the Consumer Sentiment of the University of Michigan was released. The sentiment improved to 71.0 in September but remained below the 72.2 expected. The Delta strain has dampened the consumer sentiment, lowering the economic forecasts for the third quarter as economic activity slowed down.

The week ahead: FOMC Meeting and RBA Minutes

The Federal Open Market Committee will hold its September meeting. A lousy employment report and moderate inflationary pressures could delay bond taper announcement until November’s meeting. Contrarily, rising PPI and a stellar Retail Sales report could potentially prompt the Fed to take action at the following week’s meeting.

Meanwhile, the Reserve Bank of Australia will reveal the minutes of their last meeting on September 21.

AUD/USD Price Forecast: Technical outlook

The AUD/USD pair is trading well below its main daily moving averages in the daily chart, suggesting that sellers are in charge. The first support level would be 0.7200. In case of a break below the latter, the next demand area would be the 2021 low at 0.7100. A breach of that level could motivate sellers to push the price towards the psychological 0.7000.

On the other hand, buyers would need to push the price towards the 50-day moving average at 0.7342 to reclaim control.

The Relative Strength Index is at 41.18, heading lower, supporting the bearish bias.

KEY TECHNICAL LEVELS TO WATCH

AUD/USD

Overview
Today last price	0.7284
Today Daily Change	-0.0003
Today Daily Change %	-0.04
Today daily open	0.7287

Trends
Daily SMA20	0.7325
Daily SMA50	0.735
Daily SMA100	0.7511
Daily SMA200	0.7606

Levels
Previous Daily High	0.7348
Previous Daily Low	0.7274
Previous Weekly High	0.7469
Previous Weekly Low	0.7345
Previous Monthly High	0.7427
Previous Monthly Low	0.7106
Daily Fibonacci 38.2%	0.7302
Daily Fibonacci 61.8%	0.7319
Daily Pivot Point S1	0.7258
Daily Pivot Point S2	0.7229
Daily Pivot Point S3	0.7184
Daily Pivot Point R1	0.7332
Daily Pivot Point R2	0.7377
Daily Pivot Point R3	0.7406

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.