- 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
GBP/USD bulls retain control near 1.3300 mark, highest since March 2022
The GBP/USD pair trades with a positive bias for the third straight day on Friday and hovers around the 1.3300 mark during the Asian session, just below its highest level since March 2022 touched the previous day.
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
Gold consolidates weekly gains, with sight on $2,600 and beyond
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
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.