- US dollar jumps across the board as Wall Street tumbles.
- AUD/USD drops to 0.7680 before rebounding, remains under pressure.
The AUD/USD accelerated the decline during the American session and fell to 0.7680, hitting the lowest level since Tuesday. As of writing, it trades at 0.7700, still under pressure.
The decline took place amid a rally of the US dollar across the board. The Aussie and the Kiwi were among the most affected by a sharp decline in equity markets around the world.
The DXY climbed to 90.75, the strongest level since December 22. A decline in US bond yields limited the upside. Still, the momentum favors the greenback. Weaker-than-expected US economic data did not weigh on the dollar.
In Wall Street, the Dow Jones is falling 0.75%, at the lowest since January 6. The Nasdaq drops by 0.70%. After Fed’s Powell speech and Biden’s stimulus package, investors now appear to be focusing on other things that do not look so positive at the moment.
Short-term outlook
From a technical perspective, AUD/USD is testing the 100-SMA in 4-hour around 0.7685; a consolidation below would expose the weekly low at 0.7664. Below, the next support stands at 0.7635/40. If it holds above 0.7700, the Aussie should keep the pressure under control.
Technical levels
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