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AUD / USD pulls back below 0.7050, clings to small daily gains

  • AUD / USD rose to a daily high of 0.7072 on Friday.
  • The major Wall Street indices are trading deep in negative territory.
  • The US dollar index rebounds towards 94.00 thanks to safe haven flows

After climbing to a new daily high of 0.7072, the pair AUD/USD It erased most of its daily gains and was last seen trading 0.7036, where it was up 0.1% on the day.

USD bounces as US equities slide

Strong bearish pressure surrounding the major US stock indices allowed the dollar to regain its safe haven position and forced AUD / USD to turn south. At the time of writing, the S&P 500 and Dow Jones Industrial Average indices were down 1.7% and 1.5% respectively, while the US dollar index was down just 0.05% on the day at 93.88.

Hours earlier, data released by the US Bureau of Economic Analysis revealed that personal spending and personal income rose 1.4% and 0.9% in September, respectively. Although these figures were better than analyst estimates, they did not help improve market sentiment.

No macroeconomic data will be released for the rest of the day and month-end flows could increase market volatility.

Credits: Forex Street

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