AUD/USD fell to 7-day lows, but rebounded to 0.6900 amid risk aversion

- Article Top Advertisement -
  • The AUD/USD pair failed to gain traction on mounting US recession fears and weak Ausslie jobs data.
  • Initial jobless claims in the US were better than expected, cushioning the dollar’s decline.
  • The odds of a rate hike by the RBA stand at around 60%, while 40% expect no change in its monetary policy.

The pair AUD/USD fell for the second day in a row, hitting a fresh weekly low at 0.6871, on a risk aversion momentum spurred on by recession fears rising after US economic data actually showed the economy slowing . The Fed’s hawkish comments spooked investors into safety. At the time of writing, the AUD/USD pair is trading at 0.6901, 0.61% below its opening price.

Rising US concerns a headwind for AUD/USD

The AUD/USD pair continues to weaken, despite the fact that the US dollar (USD) continues to offer broadly. Inflation data on Wednesday in the United States (US) cooled, reflecting the tightening of monetary conditions imposed by the US Federal Reserve (Fed). However, consumers are feeling the pinch as Retail Sales plunged on a monthly basis while Industrial Production (IP) fell for the second month in a row.

- Article Inline Advertisement 1-

The US economic calendar on Thursday saw jobless claims rise by 190,000, 24,000 disappointing expectations, while continuation benefit claims fell. At the same time, home construction starts and building permits missed estimates, while the Philadelphia Fed’s manufacturing index, although in contraction territory (-8.9), improved from the reading of -13.7. of November.

The dollar index, which measures the value of the dollar against a basket of currencies, had two consecutive days of losses and fell 0.24% to 102,165 points. However, a late recovery in US Treasury yields, specifically the 10-year Treasury yield, is up four basis points to 3.411%, putting a headwind for AUD/USD.

- Advertisement -

On the Australian side, employment numbers unexpectedly fell in December, a headwind for the Aussie (AUD). Money Markets Futures imply a 60% chance the Reserve Bank of Australia (RBA) will raise rates in February, but there is also a 40% chance the RBA will pause as rates They are up 300 basis points.

What must be considered?

An absent Australian economic agenda will have AUD/USD traders leaning towards US dollar action. In the United States, Existing Home Sales and the Fed will be published.

AUD/USD key technical level


Last price today 0.6898
Today Change Daily -0.0038
today’s daily variation -0.55
today’s daily opening 0.6936
daily SMA20 0.6835
daily SMA50 0.6769
daily SMA100 0.6638
daily SMA200 0.6824
previous daily high 0.7064
previous daily low 0.6936
Previous Weekly High 0.6994
previous weekly low 0.686
Previous Monthly High 0.6893
Previous monthly minimum 0.6629
Fibonacci daily 38.2 0.6985
Fibonacci 61.8% daily 0.7015
Daily Pivot Point S1 0.6893
Daily Pivot Point S2 0.685
Daily Pivot Point S3 0.6765
Daily Pivot Point R1 0.7022
Daily Pivot Point R2 0.7107
Daily Pivot Point R3 0.715

Source: Fx Street

- Article Bottom Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles