AUD/USD unable to seek out help, hits recent lows beneath 0.6540 amid threat aversion

AUD/USD unable to seek out help, hits recent lows beneath 0.6540 amid threat aversion

Table of Contents


  • US Greenback unstoppable amid threat aversion and constructive US financial knowledge.
  • US yields reasonable upside as Wall Road falls additional.
  • AUD/USD extends weekly losses and trades at its lowest since Could 202.

The AUD/USD dropped additional through the American session amid threat aversion and a stronger dollar. The pair is buying and selling at 0.6540, the bottom stage in additional than two years, beneath stress whereas the DXY printed recent 20-year highs close to 113.00.

All falling…

The greenback is the one king on the town on Friday. Commodities are plunging, together with a 6% slide in crude oil prices and a 4% decline in silver. Sovereign bonds are additionally decrease, solely discovering some demand as traders fly to high quality. In Wall Road, the Dow Jones is falling by 1.51% and the S&P 500 drops by 1.76%.

Fears a couple of world recession and better rate of interest proceed to weigh on market sentiment that impacts rising and commodity currencies. The US greenback not solely advantages from risk aversion on Friday but additionally from US economic data. The S&P Global PMI preliminary September reading confirmed a a lot bigger than anticipated rebound, notably within the service sector that boosted the dollar additional.

The 100-pip slide on Friday in AUD/USD, provides to weekly losses that now are close to 200 pips. The pair is about to submit the bottom weekly shut since Could 2020. Regardless of oversold readings, the damaging momentum stays agency.

Technical ranges

 



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