• Greenback gains momentum amid higher yields and risk aversion. 
  • AUD/USD heads for second weekly decline in a row. 

The AUD/USD dropped further and is trading at 0.7265, the lowest level in three weeks. The aussie is about to post the second weekly loss in a row amid a stronger US dollar

The breakout of the US 10-year yield above 1.35% boosted the greenback across the board. The DXY is at 93.15, up 0.31%, at the highest level since August 27. The modestly lower than expected reading of UoM Consumer Confidence did not weakened the dollar. At the same time, equity prices in Wall Street are falling. The risk aversion weighs on the aussie. The Dow Jones falls 0.52% and the Nasdaq 0.80%. 

Week ahead: FOCM and RBA minutes 

Market volatility will likely continue next week with the FOMC meeting. The Federal Reserve is expected to keep monetary policy unchanged; analysts will look for clues about the future of the QE program. 

According to analysts at TD Securities, Fed’s officials will likely signal that they are almost ready to taper the purchase program. “We expect a formal announcement in December, not November, but we will review our forecast after the meeting. While median 2022-23 dot-plot projections will likely be unchanged, the math makes any changes much more likely to be up than down. The 2024 dot plot will likely show further, gradual tightening. Median inflation/growth projections for 2021 will have to be raised/cut.”

In Australia, the key report will be the Reserve Bank of Australia minutes. “Governor Lowe laid out the case for the RBA's Sep taper decision in his recent speech, but we think the minutes could showcase a debate among the Board on other G10 CBs' future monetary policy settings and its implications for RBA's QE path. Discussion over housing could be more prominent and if bank lending is indeed being "maintained" even as the property market runs red-hot”, argue analysts at TDS. 

Technical levels

AUD/USD

Overview
Today last price 0.7278
Today Daily Change -0.0009
Today Daily Change % -0.12
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

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD extends slide toward mid-1.0200s after US data

EUR/USD continues to decline toward 1.0250 during the American trading hours on Friday. After the data published by the UOM showed that the long-run inflation outlook rose to 3% in August from 2.9% in July, the dollar gathered strength against its rivals, weighing on the pair.

EUR/USD News

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD pushes lower 1.2100 on broad dollar strength

GBP/USD is trading deep in negative territory near 1.2100 during the American session on Friday. With the UoM's Consumer Sentiment Survey pointing to a modest increase in the long-run inflation outlook, the US Dollar Index extended its rally, reflecting a broad dollar strength.

GBP/USD News

Gold clings to modest gains above $1,790

Gold clings to modest gains above $1,790

Gold stays relatively resilient on Friday and trades modestly higher on the day above $1,790. Although the greenback continues to outperform its rivals on the latest US data, falling US Treasury bond yields help XAU/USD hold in positive territory.

Gold News

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shiba Inu ready to go ballistic: Shiba Eternity released in Vietnam

Shytoshi Kusama, the project leader of Shiba Inu announced the launch of Shiba Eternity for Vietnamese players. The game is available for testing and the team has asked users for their review. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures