- AUD/USD holds to daily losses, headed for the lowest close since February 2016.
- US dollar on demand against commodity currencies amid risk aversion.
The AUD/USD pair dropped to 0.7064 reaching a new 32-month low on the back of a stronger US dollar and a deterioration in market sentiment. The Dow Jones is having the worst day in weeks, as it falls 1.25%.
The Aussie is about to post the fourth slide in a row and the lowest daily close since February 2016. It is holding near the lows, firm under last month lows, pointing to further weakens from a technical perspective.
The moves take place amid rising US yields. The 10-year reached earlier today at 3.22% the highest level in years and then pulled back to 3.18%. Today’s US economic data (jobless claims and factory orders), like yesterday, also came in above expectations. On Friday, the US official employment report is due. In Australia, housing data will be released.
AUD/USD Levels to watch
According to analysts at UOB Group, the AUD/USD pair is expected to remain under pressure as long as the key resistance at 0.7175 remains intact. Below that level resistance could be seen at 0.7075 and 0.7100. On the downside, supports level are located at 0.7060, followed by 0.7030 and then the psychological area of 0.7000
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