Forex
AUD/USD Tumbles as US Yields Fuel Broad-Based Dollar Buying
The AUD/USD pair saw a decline in its value as US dollar buying continued to gain momentum. According to eFXdata, the pair opened near 0.7030 after trading at 0.7045 overnight, but this rally in US yields helped extend USD buying in New York.
Other factors contributing to the broad-based USD buying included drops in gold and silver prices as well as gains in the USD/CNH exchange rate. As a result of these market movements, the AUD/USD fell below its 200-day moving average (DMA) and pierced the 61.8% Fibonacci retracement level of 0.6867-0.7238.
A two-month low was reached at 0.7007 before the pair saw a slight bounce. However, some USD selling lifted the AUD/USD near 0.7015 late in the session, with the pair ultimately closing down by 0.36%.