AUD/USD Finds No Support and Makes New Lows Below 0.6540 Amid Risk Aversion

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  • The dollar is unstoppable amid risk aversion and positive US economic data.
  • US yields moderate gains as Wall Street continues to slide.
  • AUD/USD extends weekly losses and trades at its lowest since May 202.

The AUD/USD continued to fall during the American session amid risk aversion and the strengthening of the dollar. The pair is trading at 0.6540, the lowest level in more than two years, under pressure, while the DXY hit new all-time highs near 113.00.

All fallen…

The dollar is the only king in town on Friday. Commodities plunge, including a 6% drop in crude oil prices and a 4% decline in silver. Government bonds are also down, finding only some demand as investors flock to quality. On Wall Street, the Dow Jones falls 1.51% and the SP500 1.76%.

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Fears of a global recession and rising interest rates continue to weigh on market sentiment affecting emerging and commodity currencies. The dollar is not only benefiting from risk aversion on Friday, but also from US economic data. September’s preliminary reading of the S&P Global PMI showed a much larger-than-expected rebound, especially in the services sector, which further boosted the dollar.

Friday’s 100 point drop in AUD/USD adds to weekly losses now approaching 200 points. The pair is about to post the lowest weekly close since May 2020. Despite the oversold readings, the negative momentum remains firm.

Technical levels

AUD/USD

Overview
last price today 0.6547
daily change today -0.0097
daily change today -1.46
Daily opening today 0.6644
Trends
daily SMA20 0.6775
daily SMA50 0.6882
daily SMA100 0.6933
daily SMA200 0.7097
levels
Previous daily high 0.6671
Previous Daily Low 0.6574
Previous Weekly High 0.6916
Previous Weekly Low 0.667
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci of 38.2% 0.6634
Daily Fibonacci of 61.8% 0.6611
Daily Pivot Point S1 0.6589
Daily Pivot Point S2 0.6533
Daily Pivot Point S3 0.6492
Daily Pivot Point R1 0.6685
Daily Pivot Point R2 0.6726
Daily Pivot Point R3 0.6782

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Source: Fx Street

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