- US dollar remains strong after FOMC and amid risk aversion.
- AUD/USD suffers the worst weekly slide since September of last year.
The AUD/USD dropped further during the American session, breaking under 0.7500 as the rally of the US dollar goes on. The pair bottomed at 0.7483, reaching the lowest level since December of last year.
The pair is falling for the fourth consecutive day in a row, accumulating a decline of more than 200 pips. The slide accelerated after the FOMC meeting. The Fed signaling that it could raise rates sooner than previously expected, triggered a rally of the dollar and pushed metals to the downside.
Commodity-linked currencies are also under pressure amid a deterioration in market sentiment. The Dow Jones is falling by 1.37% and the Nasdaq 0.45%.
Terrible week for AUD/USD
The aussie is having the biggest weekly decline versus the US dollar since September of last year. It broke a consolidation range and tumbled, negating the bullish bias.
Analysts at Credit Suisse warn the weekly close around current levels would introduce a bearish view. “A weekly closing beak below the key band of support at the year to date lows at 0.7551/31 and the 200-day average would complete a large top to reverse us into a medium-term bearish view, with the next initial support seen at 0.7461, then the 23.6% retracement of the entire up move from 2020 at 0.7418.”