AUD/USD inter-market: Attempting minor-recovery, will it last?
|The bears took a breather from the downward spiral, allowing a minor-recovery in AUD/USD back on 0.76 handle. Although it remains to be seen whether the spot can sustain the recovery mode post-American open.
The Aussie reversed sharply from three-week highs and now extends its bearish momentum into a second-day today, as almost non-existent demand for higher-yielding currencies amid persistent risk-off environment, continues to weigh on the prices.
Additionally, weaker oil and copper prices also exacerbate the pain in the resource-linked AUD, keeping the major deep into the red. The CBOE volatility index (VIX) jumps 2.21%, indicating risk-off at full steam, largely on the back of sell-off across the European markets in wake of Deutsche bank-led fears flaring up.
Moreover, the US dollar is also picking-up strength against its major peers, as investors prefer to hold the reserve currency in times of panic and market unrest. The USD index advances +0.30% to fresh weekly highs of 95.77 levels.
Later today, a string of US macro news is lined up for release in the US session, although the RO-RO sentiment will continue to dominate the fx space. Looking ahead, the Aussie now awaits next week’s RBA monetary policy assessment for fresh direction.
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