- AUD/USD fell to a fresh 2021 low on Friday.
- US Dollar Index stays in a consolidation phase a little below 92.00.
- AUD/USD is down more than 2% on a weekly basis.
The AUD/USD pair came under strong bearish pressure in the second half of the week and suffered heavy losses on Wednesday and Thursday despite the upbeat Australian jobs report.
During the Asian trading hours on Friday, the pair extended its slide and touched its lowest level of 2021 at 0.7511 before staging a rebound. As of writing, the pair was down 0.1% on the day at 0.7543. In the absence of fundamental drivers, the pair’s recent rebound seems to be a technical correction of the latest decline. On a weekly basis, AUD/USD remains on track to lose more than 2%.
The broad-based USD strength on the back of the hawkish shift witnessed in the FOMC’s Summary of Economic Projections continues to dominate the markets ahead of the weekend.
The US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, touched its highest level in more than two months at 92.07 earlier in the day but seems to have gone into a consolidation phase. Currently, the DXY is flat at 91.90.
There won’t be any high-tier macroeconomic data releases featured in the US economic docket on Friday and AUD/USD is likely to continue to fluctuate in a tight range around 2021 lows.
