AUD/USD extends slide and hits 6-day lows at 0.7100

• US Dollar rises across the board on US data and higher yields. 
• AUD/USD break range and drops to test 0.7100. 

The AUD/USD pair broke to the downside after the release of US data and extended the decline during the US session, on the back of renewed strength of the US dollar. 

After moving sideways around 0.7140 for hours, the pair turned lower after the release of US Q4 GDP data. Initially dropped to 0.7115 and recently broke even lower and tumbled to 0.7100, reaching a fresh 6-day low. 

Data showed the US economy expanded at a 2.6% annualized pace during the fourth quarter. The number came in above expectations, and also price indicators showed higher-than-expected numbers. Us yields jumped boosting the greenback. The 10-year just reach 2.71%, the highest level since early February. The US dollar also strengthened against emerging market currencies. 

So far, the decline in AUD/USD has been capped by the 0.7100 area. A break below 0.7100/0.7095 would signal more losses ahead. Support levels might be seen at 0.7070 and 0.7050/55 (February low). A recovery back above 0.7130 would remove some of the short-term bearish pressure. 

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