AUD/USD tumbles to 0.7730 amid risk aversion
- Aussie trims losses as the decline in Wall Street eases.
- AUD/USD continues to trade around 0.7750, with no clear direction.
The AUD/USD dropped from near 0.7800 to 0.7730 during the American session amid a decline in equity prices on Wall Street. The greenback gained strength on the back of risk aversion versus commodity and emerging market currencies. As of writing, the pair is hovering around 0.7750, at the same level it closed on Wednesday.
The ausssie continues to move without a clear direction in the short-term versus the US dollar, still near the YTD high that it reach in January above 0.7800. The pair about to post the third consecutive daily close near 0.7750.
The trend in AUD/USD is bullish but the aussie is not showing significant strength to reclaim and hold above 0.7800 that would clear the way to more gains. On the downside, a barrier is seen at 0.7700/0.7695, horizontal support and also the 20-day moving average. A break lower would suggest an extension of a correction.
On Wall Street, the Dow Jones is falling by 0.65% and the Nasdaq 1.07%, both indices off lows. Concerns about rising US yields weighed on market sentiment. The greenback is giving up Wednesday’s gains. The DXY is at 90.65, down 0.25% after being unable to hold above 91.00. Economic data from the US came in mixed, with jobless claims rising unexpectedly and the Philly Fed pulling back less than expected.
Technical levels