AUD/USD stalls at the 200-DMA and drops below 0.6800

• AUD/USD drops below 0.6800 toward the 20-day EMA at 0.6736.
• The US Dollar remains bid, irrespective of falling US bond yields, after the release of weak PMIs.
• Weak Chinese economic data dampened the prospects of the Australian Dollar.
• AUD/USD Price Analysis: Likely to remain range-bound in the 0.66/0.68 200 pip range.

The Australian Dollar (AUD) plunges vs. the US Dollar (USD) as the AUD/USD pair fails to conquer the 200-day Exponential Moving Average (EMA),  diving more than 60 pips or 0.99%, amidst a session driven by a strong US Dollar and negative sentiment. The AUD/USD is trading at 0.6728, below its opening price, after hitting a daily high of 0.6834.

AUD/USD tumbles due to a strong US Dollar

The beginning of 2023 has witnessed the US Dollar’s re-emergence, which is appreciating against most G8 currencies. The AUD/USD briefly pierced the 200-day EMA at 0.6820 but quickly reversed its earlier gains and dived as sentiment shifted sour, portrayed by Wall Street edging lower.