- 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.
- US coronavirus cases rise to over 3 million: Are global markets finally seeing the Grim Reaper?
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.
-
Coronavirus update: Victoria reports 134 new infections, 860 active cases
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.
- Wall Street Close: Investors start to doubt the economic recovery playbook
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.
- Gold Price Analysis: XAU/USD bulls eye $1,800 threshold as virus-led risk-off fade equities’ rally
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
-
AUD/USD Forecast: Resurgent coronavirus contagions weigh on the Aussie
Share
