- Risk-off atmosphere puts antipodeans under bearish pressure on Monday.
- US Dollar Index moves in a narrow range below 97.50 in NA session.
- Coming up: National Bank of Australia's Business Confidence Index.
After inching close to the 0.68 handle during the early trading hours of the Asian session, the AUD/USD pair lost its traction and slumped to a daily low of 0.6744 before going into a consolidation phase in the second half of the day. As of writing, the pair was down 0.47% on the day at 0.6755.
Dismal market mood hurts Aussie
The fact that the People's Bank of China (PBOC) decided to keep the USD/CNY rate above 7 for the third straight day revived concerns over the US, once again, accusing China of currency manipulation and further escalating the geopolitical tensions. Moreover, the lack of any positive developments regarding the US-China trade dispute and falling US Treasury bond yields kept investors away from risk-sensitive antipodeans.
In the Asian session on Tuesday, the National Australia Bank will release its Business Conditions and Business Confidence data for July. There won't be any other macroeconomic data releases from Australia and markets will keep a close eye on the USD/CNY rate.
Dollar stays calm ahead of inflation data
Meanwhile, the US Dollar Index (DXY) is moving in a relatively tight range on Monday after posting weekly losses for the first time in four weeks last Friday. The next significant catalyst for the DXY will be the inflation report that will be published by the US Bureau of Labor Statistics tomorrow.
Previewing the data, “The consensus expects a +0.2% mom reading for the core however our US economists expect a softer +0.13% mom reading mainly reflecting some unwind of the drivers that drove the strong reading in June," said Deutsche Bank analysts.
"It’s worth noting that markets are still pricing in 63bps of cuts by the Fed this year so it’ll be interesting to see if this data makes much of a dent in that.”
Technical levels to watch for
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 clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter gross domestic product (GDP) data on Thursday.