- Australian Dollar (AUD) dives on rising fears of surging covid cases
- WHO warns over worrying trend in Europe
- US Dollar (USD) surges on safe haven flows
- Fed speakers in focus
The Australian Dollar US Dollar (EUR/USD) exchange rate is tanking on Monday in a strong risk off session. The pair settled on Friday flat across the week at US$0.7289, after trading a fairly tight range. At 03:15 UTC, AUD/USD trades down -1% at US$0.7208 at the session low.
The risk sensitive Australian Dollar is plunging lower as risk aversion drives the markets. Fears of rising coronavirus infections globally, but specifically in Europe is unnerving investors. European stocks tumbled by the most since June on Monday amid mounting worries that new lockdowns will be applied as coronavirus cases surge.
The rising fears come after the World Health Organisation said that the trend of growing covid cases in Europe is worrying. Whilst the Chief UK medical advisor warned that the trend in the UK was moving in the wrong direction and that warned over the UK heading towards Autumn and Winter, months which naturally see virus cases rise.
The same risk off climate which is dragging on the Australian Dollar is boosting the US Dollar. Investors are looking to the greenback for its safe haven properties.
There is no high impacting data from Australian today. Instead investors will look ahead to a speech on Tuesday from the Reserve Bank of Australia Deputy Governor Guy Debelle about monetary policy and the economy.
Meanwhile the US Dollar is focused on Fed speak. With a list of Federal Reserve policy makers including Jerome Powell due to speak today, investors will be hoping for further clues over the direction of monetary policy.
Atlanta Fed R. Kaplan hinted that the Fed could consider rising interest rates once the unemployment rate reached lower levels. His comments were interpreted had a hawkish tone to them, which is helping boost the US Dollar higher.
