AUD/USD seems vulnerable near one-week low amid broad-based USD strength – by hareshmenghani AUDUSD China Coronavirus Fed Currencies
selling on Monday. The pair maintains its offered tone through the early North American session and is currently placed near a one-week low, just above the 0.6600 round-figure mark.
The US Dollar gains traction for the third straight day and builds on its bounce from the lowest level since August 12, which, in turn, is seen exerting downward pressure on the AUD/USD pair. The better-than-expected US Retail Sales data released last week cast doubts on the peak inflation narrative. Moreover, hawkish signals from severalofficials suggest that the US central bank might still be far from pausing its policy-tightening cycle and acts as a tailwind for the greenback.
Apart from this, the prevalent cautious market mood provides an additional lift to the safe-haven buck. Investors remain concerned about headwinds stemming from the worsening COVID-19 situation in China and the imposition of fresh lockdowns in several financial hubs - including the capital Beijing and the economic centre Shanghai. Furthermore, fears of a potential escalation in the Russia-Ukraine conflict take its toll on the global risk sentiment and further weigh on the risk-sensitive Aussie.
Meanwhile, worries about a slowdown in economic activity contribute to the ongoing fall in copper prices, which is seen as another factor denting demand for the resources-linked Australian Dollar. Apart from this, speculations that the Reserve Bank of Australia will stick to its dovish course favour the AUD/USD bears. Hence, a subsequent fall below the 0.6600 mark, towards testing the 0.6560-0.6550 strong horizontal support breakpoint, looks like a distinct possibility.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pairs in Focus This Week-Gold, Oil, Bitcoin, AUD/USDGet the Forex Forecast using fundamentals, sentiment, and technical positions analyses for major pairs for the week of November 20th, 2022 here.
Read more »
Weekly Forex Forecast \u2013 GBP/USD, USD/CADLast week saw the GBPUSD currency pair print a weakly bullish candlestick which closed with a significantly large upper wick- forextrade forextrading
Read more »
Trading Support and Resistance \u2013EUR/USD, GBP/USDThis week I will begin with my monthly and weekly Forex forecast of the currency pairs worth watching.
Read more »
USD/THB now seems consolidative near term – UOBMarkets Strategist at UOB Group Quek Ser Leang notes USD/THB seems to have moved into a consolidation theme as of late. Key Quotes “Our view for SGD/C
Read more »
USD Index to consolidate between a 107.00-107.50 range – INGThe Dollar is continuing to crawl higher after its sharp sell-off earlier this month. Economists at ING expect USD Index (DXY) to trade a 107.00-107.5
Read more »
GBPUSD remains depressed near daily low amid stronger USD, bears await break below 1.1800GBPUSD remains depressed near daily low amid stronger USD, bears await break below 1.1800 – by hareshmenghani GBPUSD Coronavirus Fed Recession Currencies
Read more »