AUD / USD resumes 0.7500 level amid weaker USD

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  • AUD / USD regained positive traction on Friday and reversed the previous day’s retracement decline.
  • An improvement in risk sentiment undermined the safe-haven dollar and remains supported.
  • Soaring US bond yields did little to impress USD bulls or hinder strong intraday bullish movement.

The pair AUD/USD It was based on its intraday rise and rose again above the key psychological level 0.7500 during the first half of the European session.

Following the previous day’s trend reversal from the highest level since July, the AUD / USD pair caught some fresh deals on the last day of the week amid the surge of new sales around the US dollar. Reports that Chinese giant Evergrande made funds available for a dollar bond coupon eased concerns about a credit crunch in China’s real estate sector and boosted investor sentiment. This, in turn, undermined the safe-haven dollar and acted as a tailwind for the perceived riskier Australian.

The intraday decline in the USD comes despite high US Treasury yields, bolstered by expectations of an early Fed policy tightening. Investors have been weighing the possibility of a rising interest rates in 2022 amid concerns about a faster-than-expected rise in inflation. Speculation was bolstered by comments from Fed Governor Christopher Waller on Thursday, saying that the US central bank may have to act faster if inflation continues to rise and remains too high.

Today Friday, the focus will be on a speech scheduled by Fed Chairman Jerome Powell, who will play a key role in influencing USD price dynamics. Heading into the key event risk, the US economic record, which highlights flash PMI numbers for October, and US bond yields will be considered for some momentum around the AUD / USD pair. Apart from this, traders could follow the signals of the broader market risk sentiment to seize some short-term opportunities heading into the weekend.

Technical levels


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