- The US dollar remains strong after the FOMC and amid risk aversion.
- AUD / USD suffers the worst weekly decline since September last year.
The AUD/USD it fell further during the US session, breaking below 0.7500 as the US dollar rally proceeds. The pair bottomed at 0.7483, reaching the lowest level since December last year.
The pair is falling for the fourth day in a row, accumulating a drop of more than 200 pips. The decline accelerated after the FOMC meeting. The Fed signaled that it could raise rates earlier than expected, caused the dollar to rebound and pushed metals lower.
Commodity-linked currencies are also under pressure amid a deterioration in market sentiment. The Dow Jones falls 1.37% and the Nasdaq 0.45%.
Terrible week for AUD / USD
The aussie is having the biggest weekly drop against the US dollar since September last year. It broke a consolidation range and fell, denying the bullish bias.
Analysts at Credit Suisse warn that the weekly close around current levels would introduce a bearish view. “A weekly close below the key support band at year-to-date lows at 0.7551 / 31 and the 200-day average would complete a large top to reverse the medium-term bearish view, with the next initial support seen at 0.7461, then the 23.6% retracement of the entire upward move since 2020 at 0.7418 “.
Technical levels
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