- AUD/USD sees some selling on Friday and breaks a two day gain streak to weekly high.
- The appearance of new purchases around the USD turns out to be a key factor putting downward pressure on the pair.
- The pullback in US bond yields and the positive risk tone could cap dollar gains and offer support for the pair.
The pair AUD/USD it struggled to capitalize on strong gains posted in the last two sessions and was met with fresh selling on Friday. The pair continued to lose ground during the European session and weakened below the psychological level of 0.7000reaching a new daily low in the last hour.
The expectation that the Federal Reserve will maintain its tightening policy to curb rising inflation it revived demand for the US dollar, which in turn triggered further selling around the AUD/USD pair. It is worth remembering that the so-called dot plot showed that the median projection of the federal funds rate was 3.4% for 2022 and at 3.8% for 2023.
The dollar, for now, appears to have capped the post-FOMC pullback from a two-decade high and snapped a two-day losing streak to hit a one-week low hit the previous day. That said, a combination of factors could curb dollar bulls and offer some support to the AUD/USD pair, at least for now.
Investors were reassured by the Fed’s view that the interest rate could drop to 3.4% in 2024 and 2.5% in the long term. This caused a further decline in US Treasury yields. Apart of this, signs of stability in financial markets could weigh on safe-haven US dollar demand and help limit the pair’s deeper losses, sensitive to risk.
Therefore, it will be prudent to wait for a strong follow-up of selling before confirming that the AUD/USD rebound from the monthly low reached earlier this week is over. Market participants now await the US economic calendar, with the release of industrial production data and the capacity utilization rate later at the start of the American session.
Also, US bond yields could influence dollar price dynamics and give the AUD/USD pair some momentum. Investors will be following signs of broader market risk sentiment to take advantage of some short-term opportunities on the final day of the week.
AUD/USD technical levels
AUD/USD
Panorama | |
---|---|
Last Price Today | 0.699 |
Today’s Daily Change | -0.0063 |
Today’s Daily Change % | -0.89 |
Today’s Daily Opening | 0.7053 |
Trends | |
---|---|
20 Daily SMA | 0.7113 |
50 Daily SMA | 0.715 |
100 Daily SMA | 0.7222 |
200 Daily SMA | 0.7244 |
levels | |
---|---|
Previous Daily High | 0.707 |
Previous Daily Minimum | 0.6942 |
Previous Maximum Weekly | 0.7248 |
Previous Weekly Minimum | 0.7036 |
Monthly Prior Maximum | 0.7267 |
Previous Monthly Minimum | 0.6828 |
Daily Fibonacci 38.2% | 0.7021 |
Daily Fibonacci 61.8% | 0.6991 |
Daily Pivot Point S1 | 0.6973 |
Daily Pivot Point S2 | 0.6894 |
Daily Pivot Point S3 | 0.6846 |
Daily Pivot Point R1 | 0.7101 |
Daily Pivot Point R2 | 0.7149 |
Daily Pivot Point R3 | 0.7228 |
Source: Fx Street

With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.