- The dollar remains strong in the market and puts pressure on the AUD / USD.
- The pair fell for the third time in a row, also weakened by the decline in stocks.
- Fall in Treasury yields does not hold back the dollar.
The AUD / USD extended the pullback and fell to fresh seven-month lows, around the region of 0.7420. Prior to this, it had a slight rebound, which failed to overcome the 0.7445 area, before resuming the losses.
The pair extended the pullback from 0.7600 and fell for the third day in a row on Thursday. The growing expectation of a monetary tightening from the Fed, plus the new covid-19 nerves affected global risk sentiment and turned out to be a key factor that weighed on the Australian dollar.
The investors They now seem concerned about the economic consequences of the imposition of new restrictions to slow the spread of the highly contagious delta variant of the coronavirus. New South Wales extended the lockdown in Australia’s largest city, Sydney, for another week. The drop in Treasury yields did not hold back the dollar. The 10-year rate is at 1.25%, the lowest since February 16.
The FOMC meeting minutes June reports released on Wednesday revealed that the authorities expect that the conditions to reduce the pace of asset purchases could be met earlier than previously anticipated. Fed officials agreed that they should be ready to act if inflation or other risks materialize, suggesting that discussions over the buyout program could begin in the coming months. Today I know will publish data on requests for unemployment benefits.
Technical levels
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