AUD/USD slumps to fresh daily lows near 0.7720 amid flight to safety
|- AUD/USD is falling sharply in the second half of the day.
- USD finds demand as market mood sours during the American session.
- Focus shifts to March Retail Sales data from Australia.
After rising above 0.7800 for the first time in a month earlier in the day, the AUD/USD pair reversed its correction during the American trading hours and was last seen losing 0.4% on a daily basis at 0.7724.
DXY rises on safe-haven flows
In the absence of significant macroeconomic data releases, the risk sentiment seems to have become the primary driver of the USD's market valuation. The souring market mood, as reflected by the sharp decline in Wall Street's main indexes, helped the greenback find demand in the second half of the day. At the moment, the US Dollar Index is rising 0.2% on the day at 91.25 and the S&P 500 Index is down 0.8%.
Earlier in the session, FOMC Chairman Jerome Powell reiterated that the Fed remains committed to inflation and employment goals. "We do not anticipate high inflation but we have tools to address 1970s-type pressures if they arise," Powell added. Nevertheless, these remarks failed to trigger a significant market reaction.
On Wednesday, the Westpac Leading Index and March Retail Sales data from Australia will be looked upon for fresh impetus. Although a stronger-than-expected sales report could help the AUD limit its losses, the risk perception is likely to continue to impact AUD/USD's movements.
Technical levels to watch for
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.