The AUD/USD pair remained depressed via the early European session and was once final viewed hovering close to one-month lows, round the 0.7625-20 region.
The pair introduced to the preceding day’s losses and witnessed some follow-through promoting for the 2nd consecutive session on Thursday. The standard risk-off temper persisted using some haven flows toward the US greenback and used to be considered as a key aspect weighing on the perceived riskier aussie.
Investors became cautious amid worries about the monetary fallout from the imposition of sparkling COVID restrictions. In fact, the UK introduced new measures to clamp down on tour to/from Britain, whilst China additionally sought to restrict Lunar New Year journeys to stem a surge in COVID-19 cases.
Adding to this, extend in coronavirus vaccines, alongside with doubts about the timing and dimension of a new US financial stimulus package deal in addition dampened the mood. Given that a lot of high-quality information used to be already priced in the markets, the trends served as a catalyst for buyers to e book profits.
Meanwhile, the USD bulls appeared as an alternative unaffected through the ongoing decline in the US Treasury bond yields and additionally shrugged off Wednesday’s dovish FOMC statement. The Fed raised worries about the tempo of monetary healing and stated that the ongoing public fitness disaster poses dangers to the outlook.
The market center of attention now shifts to Thursday’s launch of the Advance US Q4 GDP report, due later all through the early North American session. Apart from this, the market hazard sentiment will impact the USD fee dynamics and produce some non permanent buying and selling possibilities round the AUD/USD pair.