AUD/USD drops to 20-day lows as US Dollar soars
- Aussie accelerates slide versus US Dollar as downside streak continues.
- AUD/USD heads fro lowest close in three weeks despite rising equity prices.
The AUD/USD pair accelerated to the downside during the American session and extended losses. The pair dropped to 0.7080 hitting the lowest level since April 3. As of writing, trades at 0.7087, down 45 pips for the day, about to post the fourth decline in a row and the lowest close in three weeks.
Risk aversion in currencies, not is stocks
The move lower took place amid a rally of the US Dollar across the board. Measured by the DXY it is testing 2019 highs around the 97.70 zone. A break higher would show prices not seen since June 2017.
The greenback is also rising against Emerging market currencies while it is flat versus the yen. The mentioned flows are associated with risk aversion. But in Wall Street, equity prices are higher. The DOW JONES is up 0.49% and the NASDAQ gains 1.01%. The good tone in stocks is not seen in the currency market.
Sentiment around the US Dollar is likely to continue to dominate price action in AUD/USD, at least until Wednesday’s Asian session when CPI data from Australia will be released.
Levels to watch