- Aussie downed by broad USD rebound, CNY depreciation comments amid risk-off.
- Falling Chinese iron-ore futures add to the downside in the AUD.
- All eyes on trade war, US CPI and Australian employment data.
The selling interest around the AUD/USD pair gathered pace in the European trading after the US dollar regained ground across the board amid a major turnaround in the risk sentiment.
Souring risk appetite spurred by trade jitters, Hong Kong protests
Escalating US-China trade row combined with the latest developments surrounding the Hong Kong protests triggered risk-aversion across the board, with the US equity futures turning south in tandem with the Treasury yields.
Hong Kong cancels all flights and Chinese police assembling in Shenzhen
Moreover, the sentiment around the Australian dollar was dented by the slump in the Chinese iron-ore prices. The ferrous metal hit fresh two-month lows of CNY 609.50 ($86.31) per tonne amid worries of weak demand and supply risks. Note that iron-ore is Australia’s top export product.
Further, a weaker Yuan fix by the PBOC, in a bid to counter the impact of the US tariffs on the economy, also added to the bearish momentum seen in the spot while markets digest the weekend’s comments on US-China trade by the US President Trump.
The higher-yielding currency will continue to get influenced by the risk trends in the session ahead, as the US docket remains data-empty this Monday. Also, in focus remains the speech by the Reserve Bank of Australia (RBA) policymaker Kent for near-term trading impetus ahead of the US CPI and Australian jobs data.
AUD/USD Technical 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
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.