AUD / USD plummets below 0.7750 with renewed USD strength

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  • AUD / USD took a 180 degree turn at the end of the US session.
  • The US dollar index rose to a new monthly high above 91.40.
  • The 10-year US Treasury yield shot higher after statements by FOMC Chairman Powell.

The pair AUD/USD it was under heavy downward pressure in the last US session and lost more than 60 pips in the last hour. At time of writing, the pair was down 0.45% on the day at 0.7742.

DXY advances towards 90.50

The renewed strength of the USD seems to be weighing heavily on AUD / USD. Speaking at an event hosted by the Wall Street Journal, FOMC Chairman Jerome Powell said they would be concerned “about a persistent tightening of overall financial conditions” and refrained from touching on the bond market turmoil.

With the initial market reaction, the 10-year US Treasury yield rose sharply and gave the dollar a boost. At the moment, the US Dollar Index is trading at its highest level in a month at 90.43, rising 0.53% on the day.

In the early trading hours of the Asian session, the AiG Services Performance Index will be on the Australian economic agenda, but investors are likely to stay focused on US Treasury yields and USD market valuation.

Technical levels

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