- AUD/USD bulls buckle below weekly highs as risk sentiment deteriorates.
- Australia's ASX 200 Index was down 0.20% at 5,999.40 points in early trade.
AUD/USD is currently trading at 0.6947 and virtually flat n the day having stuck to a relatively tight 0.6932/50 range for the Asian session so far.
The Aussie has been on the radar this week with news of a resurgence in the coronavirus on home soil as well as the main event of the week in the Reserve Bank of Australia (RBA) interest rate decision happening yesterday.
AUD/USD snapped six consecutive days of advances as the less committed bulls took some profit off the table at weekly highs.
The RBA keeps the official cash rate (OCR) at the record low of 0.25% in July.
The pair made a post-meeting high of 0.6998 but rolled over to 0.6945 late afternoon as regional equity sentiment cooled.
This price extended to a low of 0.6923 in early London before moving to a high of 0.6977 as the US dollar faded away across the G10 space.
However, the price was soon met with sellers emerging on the latest coronavirus headlines which have upset Wall Streets impressive recovery year to date, shaving some cream off fro the top of US stocks and the benchmarks.
ASX 200 Index capped in mid-day trade
Meanwhile, Australian shares had slipped in early trade as investors cautiously hit the "pause button" after significant gains in the past few weeks.
Most of Wednesday's best-performing stocks were gold miners. Gold prices are on the verge of testing $1,800 on a spot basis.
Consequently, Northern Star Resources (+4.7pc), Evolution Mining (+3.9pc) and Gold Road Resources (+3.6pc were top performers in the open today.
Meanwhile, financials was the weakest sector, weighed down by NAB (-1.5pc) and the other major banks, which shed between 0.8 and 1.5 per cent each.
AUD/USD 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
The Federal Reserve lowered its rates by 50 bps - LIVE
The Federal Reserve reduced its Fed Fund Target Range (FFTR) by 50 bps to 4.75%-5.00% amidst a divided consensus at its gathering on Wednesday.
EUR/USD climbs to daily highs near 1.1180 following the Fed’s decision
EUR/USD now picks up extra pace and revisits the 1.1180 region after the Federal Reserve decided to cut its interest rates by 50 bps at its event on Wednesday.
GBP/USD hits fresh tops near 1.3300 on weaker Dollar
The Greenback is now accelerating its decline following the Fed’s decision to reduce its interest rates, sending GBP/USD to fresh tops in the 1.3290 zone.
Gold clinches a record high near $2,600 ahead of Powell
Prices of Gold gather extra steam and hit an all-time top near the $2,600 mark per ounce troy as investors continue to assess the 50 bps rate cut by the Federal Reseve and warm up for the usual press conference by Chief Jerome Powell.
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut
The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.