FX

AUD/USD unable to find support, hits fresh lows under 0.6540 amid risk aversion

  • US Dollar unstoppable amid risk aversion and positive US economic data.
  • US yields moderate upside as Wall Street falls further.
  • AUD/USD extends weekly losses and trades at its lowest since May 202.

The AUD/USD dropped further during the American session amid risk aversion and a stronger greenback. The pair is trading at 0.6540, the lowest level in more than two years, under pressure while the DXY printed fresh 20-year highs near 113.00.

All falling…

The dollar is the only king in town on Friday. Commodities are plunging, including a 6% slide in crude oil prices and a 4% decline in silver. Sovereign bonds are also lower, only finding some demand as investors fly to quality. In Wall Street, the Dow Jones is falling by 1.51% and the S&P 500 drops by 1.76%.

Fears about a global recession and higher interest rate continue to weigh on market sentiment that affects emerging and commodity currencies. The US dollar not only benefits from risk aversion on Friday but also from US economic data. The S&P Global PMI preliminary September reading showed a much larger than expected rebound, particularly in the service sector that boosted the greenback further.

The 100-pip slide on Friday in AUD/USD, adds to weekly losses that now are near 200 pips. The pair is about to post the lowest weekly close since May 2020. Despite oversold readings, the negative momentum remains firm.

Technical levels

Articles You May Like

EURUSD trades back toward the 200 hour MA/topside swing area.
‘Path to oblivion’: Ukraine military gains could deepen Russia’s economic problems
Downfall of Canada’s Lambo driving ‘Crypto King’ reportedly sees $35M in losses
USDJPY move lower stalls ahead of the 38.2% retracement of the last trend move higher
Sterling Nose-Dived, Dollar Skyrocketed, Yen Saved by Intervention

Leave a Reply

Your email address will not be published.