Thursday, October 29

AUD/USD hits 12-day lows at the 0.7200 area amid risk aversion

  • Aussie drops sharply versus US dollar amid risk aversion.
  • AD//SUD test support at 0.7200, so far it holds above but remains under pressure.

The AUD/USD pair dropped further and bottomed at 0.7199, the lowest level since September 9. As of writing, it trades at 0.7205/10, down 80 pips from Friday’s close and remains under pressure.

A stronger US dollar is the key driver on Friday in the currency market. The greenback is the top performer. The DXY rose to 93.75, reaching the highest level in a month. Risk aversion boosted the demand for the safe haven.

In Wall Street, the Dow Jones is falling 3.00% and the S&P 500 2.35%. Commodities are also under pressure. Crude oil (WTI) drops 4.70% and gold 2.90%.

The deterioration in risk sentiment had no particular triggers. In Europe, report about major banks doing transactions with suspected customers; while in the US signs about economic deceleration take more significance amid the lack of progress in Washington for another round of stimulus.

Credit: FX Street

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