August 23, 2021

AUD/USD Plunges to Lowest Level Since November 2020!

 Risky sentiment that continued until the end of the week put pressure on high -yielding currencies such as the Australian dollar.

Although the Australian jobs data report that was the focus of yesterday’s Asian session was published with a positive reading, it still failed to provide support for the Aussie dollar movement.

Although the unemployment rate fell to 4.6% from expectations to rise to 5.0%, job growth in Australia was seen weak at around 2,200 for July.

On the price chart the AUD/USD pair has seen the price plunge to a 9 -month low after the price slipped below the 0.73000 level this week.

Also driving the sharp decline in prices was due to the strengthening displayed by the US dollar as a safe-haven that attracts investors in a risky market environment.

After yesterday's New York session dropped to the level of around 0.71500, the price continued the decline in today's trading (Friday) to the level of around 0.71300 at the beginning of the European session.

The lower decline is expected to lead to the support level of 0.70000 which is the price support in September and October 2020 trading.

However, if the price manages to jump past the Moving Average 50 (MA50) barrier on the 1 -hour time frame, it will again signal for a price increase on the AUD/USD chart again.

The upside is seen to test the resistance at 0.73000 first before continuing further bullish trend movement.

This will happen if market sentiment recovers making the US dollar depreciate again while high -yielding currencies such as the Aussie dollar will regain traction in the market.