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  • AUD/USD stays heavy around intraday low as market sentiment sours.
  • US-China rant joins virus woes to heavy stock futures and US dollar.
  • Risk headlines become the key amid a light calendar.

Following its weak start to the week, AUD/USD sellers flirt with the intraday low of 0.7620, down 0.34% on a day, during early Monday. Considering the aussie pair’s risk-barometer appeal, the recently souring sentiment seemed to have defied Friday’s upbeat performance. Also weighing on the quote could be the US dollar gains.

Risk-off returns to the table”¦

Although chatters surrounding the $3.0 trillion infrastructure plan from the US and receding reflation fears could be spotted behind Friday’s risk-on mood, the coronavirus (COVID-19) woes and Sino-American trade jitters are the main catalysts behind today’s sober hours.

In her first interview to the press, US Trade Representative (USTR) Katherine Tai turned down hopes of tariff relief for China while keeping the doors open for negotiations. On the same line, Beijing levied anti-dumping tariffs on the Aussie wines during the last week and renewed trade war fears.

Further, the European economy is likely going through tough days amid the COVID-19 resurgence. French doctors have already warned of the yearly top of the virus-infected patients occupying the Intensive Care Unit (ICU). To tame the same, German Chancellor Angela Merkel suggests using the Federal law if needed. Additionally, Australia’s Brisbane undergoes a three-day lockdown after finding community transmission of the virus during the last week.

Also challenging the mood could be a colossal explosion in Indonesia and the Suez Canal chatters, not to forget geopolitical fears emanating from North Korea and Iran.

Amid these plays, S&P 500 Futures drop 0.60% whereas the US dollar index (DXY) rises 0.14% intraday by the press time.

Moving on, the US Dallas Fed Manufacturing Index for March becomes the only notable data on the calendar. However, major attention will be given to the risk catalysts for fresh impulse.

Technical analysis

100-day SMA near 0.7620 restricts the immediate downside of the pair ahead of highlighting the three-month-old horizontal support area around 0.7557-62.