AUD/USD falls to fresh 4-month lows

The Australian dollar fell sharply on Friday, accumulating sharp weekly losses, in an environment of broad USD strength amid hopes of faster rate hikes by the Fed.

AUD/USD has lost more than 400 pips from a 7-month peak set at 0.7777 ten days ago. The pair bottomed out at 0.7329 during the New York session, marking a 4-month low. At time of writing, AUD/USD is trading at 0.7343, down 0.77% on the day and on track to post a 2.72% weekly loss.  

Ever since the surprise outcome of US elections, expectations of faster monetary tightening have increases, underpinning the US currency.

AUD/USD levels to watch

As for technical levels, AUD/USD could find next supports at 0.7300 (psychological level), 0.7285 (Jun 16 low) and 0.7217 (Jun 3 low). On the other hand, resistances are seen at 0.7417 (Nov 18 high), 0.7513 (200-day SMA) and 0.7590 (100-day SMA).

To learn more about this topic, check our video analysis:

AUDUUSD from Tip TV Productions on Vimeo.