The AUDUSD declined sharply on Thursday, reversing the previous day’s three-month high as demand for the US dollar remained subdued heading into the weekend.
The AUDUSD plunged more than 1 percent on Thursday, bottoming out at 0.7864. The pair was trading at 0.7902 ahead of Friday’s Sydney session. The AUDUSD is back at familiar levels and faces near-term support at 0.7867, Thursday’s low. A break below that level would lead to a re-test of 0.7800. On the upside, initial resistance is likely found at 0.7918.
Despite the USD rally, demand for the greenback remains limited, as the US dollar index fell more than 0.4 percent to 94.78, a fresh three-month low.