AUD/USD Slumps on Strong Dollar Buying, US Yield Gains

The US dollar experienced significant buying pressure in New York trading sessions, driven by sharp gains in US yields. This led to a decline in the AUD/USD pair, which fell away from its 55-day moving average and broke below the 50% Fibonacci retracement level of the rally between 0.6867 and 0.7238.

The pair hit a one-and-a-half month low of 0.7027 and remained near this level late in the session, down by 1.18%. The completion of the consolidation of the drop from September 9's high adds to the bearish sentiment.

Australia's August employment report is a key risk factor for Asian trading hours, which could impact the AUD/USD pair.