- Aussie losses post-FOMC and Australian jobs data gains on the back of a US dollar recovery amid risk aversion.
- AUD/USD bottoms at 0.7088 and rebounds to 0.7100.
The AUD/USD pair kept falling during the US session on the back of a stronger US dollar that gained ground amid risk aversion. The Aussie pulled back initially to the level it had before the upbeat Australian jobs report and kept sliding. It recently bottomed at 0.7088, below the level it had before the Fed’s meeting.
Earlier, AUD/USD rose to 0.7167, the highest level in three weeks. Since then lost more than 70 pips making a reversal that leaves the cross vulnerable. As of writing it is trading slightly above 0.7100. The decline from the top found support at the 20-day moving average. A close clearly below that level would point to more losses for the Aussie in the short-term.
Better-than-expected US data contributed to the rally of the greenback. Also, the uncertainty around Brexit favored the demand for the greenback. The DXY rebounded sharply from monthly lows and rose to 96.62, the highest intraday level since March 15.
No key reports are due in Australia on Friday while in the US the flash PMIs and housing data will be released. Brexit development could impact on market sentiment as the EU summit goes on.
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