AUD/USD Tumbles to 1.5-Month Low as US Yields Fuel Dollar Gains

The US dollar gained strength due to sharp rises in US yields, driving significant buying of the greenback. This led to a decline in the AUD/USD pair, which fell below its 55-day moving average and broke through the 50% Fibonacci level of the recent rally from 0.6867 to 0.7238.

The pair hit a 1.5-month low of 0.7027 and remained near this level, down by 1.18%. The daily and monthly RSI values were falling, and the September monthly inverted hammer was a bearish signal.

The AUD/USD's hold below its 10-, 21-, and 55-day moving averages reinforced the bearish sentiment. The completion of the consolidation of the drop from the September 9 high added to this negative outlook.