AUD/USD: Sellers dominate amid risk-off with all eyes on RBA’s Kent, AU NAB business survey

  • AUD/USD keeps the red amid the market’s rush towards safe-havens.
  • Speech from RBA’s Kent and NAB data appear on traders’ radar at a short distance.
  • The US CPI and trade/political news also become the key to watch.

AUD/USD seesaws near the previous day's low as it trades to 0.6750 during early Asian morning on Tuesday.

Commodity-linked currencies often have to bear the burden of the market’s risk aversion and so does the Australian Dollar (AUD). The Aussie occupied the bottom of G10 currencies amid investors’ run away from riskier assets amid geopolitical crisis in Hong Kong and unwelcomed political surprise in Argentina.

While protests in Hong Kong include Australia’s largest trading partner China and become the key to the quote, Alberto Fernandez’s victory in Presidential primary election took the markets by storm as he prefers currency and capital controls.

On the trade front, uncertainties surrounding September talks between the US and China prevail despite the US keep supporting the odds of negotiations.

Equities and bonds also showed a harsh reaction to the risk-off mood with the US 10-year treasury yields trimming 10 basis points (bps) in a day while making the rounds to 1.64%.

Moving on, speech from RBA’s Kent, July month data for National Australia Bank’s (NAB) Business Confidence/Condition survey results for Australia and the US Consumer Price Index (CPI) will be in the spotlight for now.

The Reserve Bank of Australia’s (RBA) Assistant Governor (Financial Markets) Christopher Kent will appear for a speech at the Finance and Treasury Association Breakfast in Sydney.

While the business confidence is likely to soften from 2 to 3, business conditions could take a back seat with 1 from 3. Further, US CPI can rise to 0.3% from 0.1% on MoM basis while likely increasing to 1.7% versus 1.6% earlier on a yearly format.

Given the increasing risk-averse market sentiment, investors will be on the lookout for any positive news before recalling their Aussie longs.

Technical Analysis

Unless breaking 0.6745/50 on the downside, prices are less vulnerable to visit 0.6683/77 are including recent low and that of January. Alternatively, last week's high near 0.6822 and June month low around 0.6831 hold the keys for the pair’s run-up towards 21-day exponential moving average (EMA) level of 0.6850.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.


GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.


Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.