- US stocks extend their recovery after the FOMC.
- The dollar gains momentum during the American session, the DXY moves away from its monthly lows.
- AUD/USD corrects lower, hovering around 0.7100.
The AUD/USD pair continued to fall during the American session and reached a fresh daily low at 0.7068, slightly above the level it was before the FOMC statement. The pair is hovering around 0.7100, trying to recover that area. In the last few hours, the dollar has gained momentum across the board. The NFP will be published on Friday.
Equity markets rallied again on Thursday, extending the post-Fed recovery and also following rate hikes by the Bank of England and the European Central Bank. At the same time, the Yield on the bonds has dropped considerably. Despite risk appetite and lower yields, the US dollar rallied strongly in American hours.
The Dollar Index rose 0.30%, recovering from multi-month lows. At the same time, gold and silver are experiencing a sharp reversal.
Weak commodity prices and a stronger dollar pushed AUD/USD away from a seven-month high hit on Thursday at 0.7157.
From a technical point of view, if the AUD/USD consolidates below 0.710, the outlook for the Aussie would deteriorate. The next support lies at 0.7060, followed by 0.7030. The pair needs to initially recover 0.7100 and then hold above 0.7130 to keep the doors open to new cycle highs.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
