- The US dollar strengthens across the board amid higher US yields.
- AUD / USD returns Tuesday’s gains, downward pressure increases.
The pair AUD/USD is extending the intraday decline at the start of the American session on Wednesday, falling to a new daily low at 0.7769 amid a stronger US dollar in all fields. The driver of the latest upward move in the USD has been US yields.
US economic data was below expectations. The ADP report showed an increase of 117,000 new jobs in the private sector in February, below the 177,000 expected by the market. ISM services sector data surprised to the downside with the main index falling from 58.7 to 55.3. The PMI price index jumped from 64.2 to 71.8. Market participants largely ignored this data.
On Wall Street, the Dow Jones falls 0.08% and the Nasdaq more than 1%. Both indices were mostly positive on the futures market before the open. The turn in the markets has weighed on the AUD / USD. Furthermore, metal prices have turned sharply lower.
From a technical perspective, the recovery of AUD / USD has found resistance at 0.7835 / 40. The price is testing a short-term uptrend line around 0.7770/75, and a break to the downside should point to more losses. The following support is seen in 0.7730 and then on 0.7705.
AUD / USD technical levels
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