- AUD/USD declines even after RBA minutes cited no appetite for negative interest rates.
- Risk sentiment remains under pressure amid fears of worsening coronavirus pandemic.
- US President Trump signals fears of tough two weeks, Goldman anticipates a double-digit contraction in the US Q2 2020 GDP.
- Aussie activity/housing data flashed mixed signals off-late.
With the latest RBA minutes adding downside pressure on AUD/USD, earlier bearing the burden of mixed data and risk-off, the Aussie pair drops to 0.6130 amid the early Wednesday.
The latest minutes for the Reserve Bank of Australia’s (RBA) emergency meeting on March 18 suggest the policymakers have no appetite for negative interest rates. The statement also indicated optimism among the RBA monetary policy members as they expect recovery once the coronavirus (COVID-19) pandemic gets over.
Read More: RBA Minutes: No appetite for negative interest rates
It’s worth mentioning that the pair ignores the upbeat prints of Aussie Building Permits MoM for February. The housing market indicator surged below 4.5% forecast and -15.3% before 19.9% in its recent release. Before the housing data, Australia’s AiG Performance of Manufacturing Index and Commonwealth Bank (CBA) Manufacturing PMI flashed mixed readings.
Not only mixed economics, threats from US President Donald Trump and GDP warnings from Goldman Sachs also weighed on the pair during early-Asia. Further, calls that the New York City crossed 1,000 mark as far as deaths due to the virus are concerned also pushed traders off riskier assets like the Australian dollar.
While portraying the risk-off, the US 10-year treasury yields remain weak below 0.70% whereas the US stock futures and Japan’s NIKKEI mark losses more than 1.0% by the press time.
Moving on, investors will pay more attention to virus news amid a lack of major data ahead of the US session.
Technical analysis
Not only 21-day SMA near 0.6160 but the previous day’s high near 0.6215 also question the buyers.
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