AUD/USD drops towards 0.7700 amid notable US dollar demand
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AUD/USD drops towards 0.7700 amid notable US dollar demand

  • AUD/USD keeps falling, as the US dollar remains firmer on the session.
  • Victoria’s lockdown news outweighs the Australian Q1 GDP beat.
  • Focus shifts to US jobs data in the week ahead.

AUD/USD is fast approaching the 0.7700 support area, as the buying interest around the US dollar remains unabated.

Strong US Manufacturing PMI revived the Fed’s tapering expectations, boosting the greenback’s appeal. Investors shrug off dovish Fedspeak, as economic optimism calls for monetary policy normalization.

On the AUD side of the story, the sentiment remains undermined by a seven-day extension of the covid lockdown in Australia’s second-most populous state of Victoria. The covid woes overshadow the positive impact of the upbeat Q1 GDP data.

The Australian economy expanded 1.8% in Q1, beating expectations of a 1.5% growth and +3.2% reported in the previous quarter. The aussie traders also digest the latest remarks from the RBA Deputy Governor Guy Debelle, as he downplays concerns over the Victoria lockdown.

The pair will continue to remain at the mercy of the dollar’s price action and sentiment on global markets amid a lack of relevant US macro news. The next key driver for the spot remains the US ADP and NFP data due later this week.

AUD/USD technical levels


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