- AUD/USD pared early gains, hitting a daily low in the final hour.
- The risk sensitive Aussie Dollar was dragged down by risk aversion.
The AUD/USD pulled back 35-40 pips in the European session, trading back below 0.7300 in the last hour.
The pair started the week in positive territory, although the move higher lacked conviction trading within the one week old range. Risk aversion then took over, limiting gains in the perceived riskier Aussie Dollar.
Rising global covid cases poured cold water on hopes of V shaped recovery. This combined with rising tensions between US and China hit risk appetite, boosting the US Dollar owing to its safe haven status and contributing to AUD/USD pair’s pullback from the daily high of 0.7324, struck in the Asian session.
Given the light economic calendar risk sentiment is expected to drive AUD/USD. A speech by Fed Chair Jerome Powell might influence the USD producing short-term trading opportunities.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.