Forex world

March 23, 2023

AUD/USD again rejected from above 0.6750

- Australian Dollar falls against G10 rivals during the European session.

- US Initial Jobless Claims drops unexpectedly, helping DXY.

- AUD/USD reverses again from 0.6750, finds support at 0.6690.

The AUD/USD was rejected again from above 0.6750 and retreat to as low as 0.6690, before bouncing back above 0.6700 after Wall Street’s opening.

Data from the US showed a larger-than-expected decline in Jobless Claims, helping the US Dollar gained some ground. Still the greenback remains under pressure after the FOMC meeting. The Federal Reserve raised it key interest rate by 25 basis points but did not commit to further rate hikes.

The US Dollar rose after the data but is weakening again after a positive opening in Wall Street. Equity prices are recovering after Wednesday’s sell-off. At the same time, US yields are moving off daily highs, adding bearish pressure to the greenback.

The Aussie was among the worst performers of the European session, with AUD/NZD reaching fresh three-day lows under 1.0700. The recovery in AUD/USD is being driven by higher equity prices and a weaker US Dollar, as the Aussie still remains weak.

From a technical perspective, AUD/USD was again rejected from above 0.6750 and pulled back. The pair is showing difficulties in extending the rally but corrections are limited, reflecting that the bullish bias is still intact.

Technical levels


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