- AUD / USD sellers extend control below 0.7200.
- The strength of the dollar and risk aversion bring down the Aussie.
- Upbeat Australian jobs are ignored amid nervousness over COVID.
The bulls of the US dollar remain in control at the start of the European session on Thursday, dropping the AUD / USD pair below the 0.7200 level for the first time since November 2020.
Minutes from the Fed’s July meeting expectations increased for a reduction in the bond purchase program by the central bank in the last quarter of this year, strengthening the recent bullish momentum of the US dollar against major currencies.
At the time of writing, the AUD / USD is trading at 0.7183, losing -0.68% on the day as it falls for the fourth day in a row.
AUD bulls face a double whammy, with the King Dollar dominating the market on the one hand, while on the other hand, coronavirus fears continue to escalate and affecting the appetite for perceived riskier assets such as the Australian dollar.
According to Bloomberg, Australia sees the worst pandemic day amid the Delta outbreak, with 681 new cases recorded in New South Wales. Melbourne is enduring its sixth lockdown since the pandemic began.
Nervousness over COVID and the strength of the dollar will continue to give AUD buyers a hard time, testing their resilience ahead of initial US jobless claims.
AUD / USD technical levels
The AUD / USD pair remains exposed to the 0.7180 support and then to the psychological magnet at 0.7000. On the other hand, any bounce can point to the July low of 0.7288 and the round level of 0.7300.
AUD / USD additional levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
