- AUD / USD came under heavy downward pressure in the European session on Friday.
- The US Dollar Index tests 96.00 backed by safe haven flows.
- There will be no high-impact data releases from the US.
Following a phase of consolidation below 0.7300 during Asian trading hours, the pair AUD/USD it lost its traction and fell to its weakest level since early October at 0.7232. At time of writing, the pair was down 0.52%.
The dollar capitalizes on safe-haven flows
Renewed USD strength appears to be causing AUD / USD to drop sharply on Friday. The US Dollar Index (DXY), which closed the previous two trading days in negative territory, is currently up 0.5% on the day at 96.00. Bitter market mood amid coronavirus headlines coming from Europe appears to be helping the dollar find demand as a safe haven.
S&P futures are trading bearish numbers, suggesting that the major Wall Street indices could lag behind before the weekend.
Later in the session, no US data will be released, but Federal Reserve Governor Christopher Waller and Federal Reserve Vice Chairman Richard Clarida will deliver speeches. Investors will be watching for comments on the Fed’s policy outlook in the face of persistently high inflation.
Technical levels
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