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.

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

 

 

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