AUD/USD drops sharply to 0.8010 as USD soars on Trump’s comments
- AUD/USD turns negative and heads for worst day in weeks.
- US Dollar jumps, crude oil and gold tumbles.
- Trump says he wants a stronger and stronger dollar.
The AUD/USD pair dropped sharply during the last hour. It fell from the highest level since September making a daily reversal. The pair was trading near daily lows at 0.8014, having the worst day in almost two months.
In an interview with CNBC, US President Trump said that the dollar was going to get “stronger and stronger”. He mentioned that his administration ultimately wants to see a strong dollar. Treasury Secretary Mnuchin welcomed the recent dollar depreciation earlier today. Trump said in the recent interview that Mnuchin's remarks were taken out of context.
Trump’s comments boosted the US Dollar Index that jumped into positive territory to 89.51. It is forming a doji candle in the daily chart that could anticipate an extension of the correction or some consolidation ahead.
AUD/USD Technical levels
The short-term tone has changed dramatically. Trump’s comments triggered the correction of the US dollar from oversold levels. Headed into the Asian session, AUD/USD technical tone now could start favoring the US dollar, still the main uptrend remains intact.
To the downside, support levels could be seen at 0.8000, 0.7965/70 and 0.7935. On the flip side, resistance now might be located at 0.8065, 0.8120 (Jan 25 high) and 0.8160.