AUD/USD hits fresh lows below 0.6700 as DXY hits weekly highs

• The US Dollar is rising across the board after US data and amid risk aversion. 
• The Australian Dollar is facing downward pressure, drops to monthly lows versus NZD. 
• AUD/USD pulled back further from key 0.6800 area, to the 20-day SMA.

The AUD/USD is falling on Thursday, having the worst day in weeks amid a stronger US Dollar across the board. The pair bottomed during the American session at 0.6688, the lowest level since May 5. AUD/NZD bottomed at 1.0601, the lowest in a month. 

The US April Producer Price Index rose 0.2%, below estimates, while Initial Jobless Claims rose more than expected to the highest level since October 2021. The data points to an easing labor market and slowing inflation. 

US bond yields are sharply lower. The US 10-year yield dropped to 3.34%, the lowest since May 4, while the 2-year fell to 3.81%. Despite lower Treasury yields, the US Dollar is up across the board as US stocks tumble. The Dow Jones is falling by 1.05% and the S&P 500 drops 0.60%. 

The weaker risk tone pushes the Greenback higher across the board, putting pressure on the AUD/USD to the downside. The pair is experiencing a significant decline, marking its worst performance in weeks, primarily due to the strength of the US Dollar. 

The pair reached its lowest point during the American session, hitting 0.6688, the lowest level since May 5. It is testing the 20-day Simple Moving Average (SMA) after being rejected from above the 0.6800 area. It has been trading within a broad range, and if it continues to consolidate below 0.6680, it suggests a potential for additional losses, with a target around 0.6640.

Technical levels