AUDUSD downside risks build, US data will be keyAUD/USD fell below the 21-DMA and struck a 12-session low Friday on the back of U.S. yield (US2YT=RR) gains rallying the U.S. dollar and the risks of a deeper aussie fall are building ahead of key U.S. data next week.
The U.S. yield gains helped increased the U.S. dollar's yield advantage over the aussie as Australia-U.S. 2-year spreads hit their widest in nearly two weeks.
Should spreads widen further the existing correlation between them and AUD/USD could help extend the pair's recent drop.
Technicals are beginning to highlight downside risks as well.
