AUD/USD: Risk-off caps the bounce to 0.6930, focus on US data
|- Bounces on USD retreat amid falling US yields, but gains capped by risk-off.
- Next of relevance remains the US macro data as trade-related news to dominate.
The AUD/USD pair popped its range trade around 0.6915 region and hit fresh daily tops near 0.6930, tracking the retreat in the US dollar across the board amid a collapse in the US 10-year Treasury yields to fresh 20-month lows below 2.160%.
The mounting fears of a global recession, following the start of a new trade war between the US and Mexico, killed the appetite for the risk assets across the financial markets this Friday. As a result, the global yields slumped, led by the declines in the US Treasury yields across the curve.
Despite the latest uptick, the AUD bulls lack vigor on widespread risk aversion and uncertainty over the US-China trade spat. Further, the commodity-currency also remains displeased by the falling oil and copper prices.
Meanwhile, the aggressive calls for an RBA rate cut next month combined with dismal Chinese and Australian fundamentals continue to remain a weight on the Aussie. The official Chinese manufacturing and services PMI reports released earlier today disappointed markets and accentuated the China slowdown fears.
Attention now turns towards the US Core PCE Price index and Consumer Sentiment data for fresh dollar trades while the risk trends will continue to remain the main market driver.
AUD/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.