Saturday, December 5

AUD/USD in weekly lows amid covid-led risk-aversion, eyes 0.7200

  • AUD/USD pressured with S&P 500 futures as risk-off mood dominates.
  • US dollar favored amid growing coronavirus fears and jittery markets.
  • US covid updates and consumer sentiment data closely eyed.

AUD/USD remains on the defensive in weekly lows above 0.7200, extending its losing streak into a fourth straight day on Friday.

At the time of writing, the aussie trades modestly flat, close to one-week lows of 0.7222 reached in the last hour. The bears look to test the 0.7200 support area, as investors shun riskier assets such as the AUD while boosting the haven demand for the US dollar.

The continued surge in the coronavirus infections globally spooks the market, with the US and Europe experiencing an intensifying second wave.

Fresh restrictions and lockdowns are being considered in the American states while the key European economies have already announced lockdowns to contain the spread. Markets fear that the coronavirus resurgence could likely threaten the global economic recovery.

The AUD traders appear to have shrugged-off the covid vaccine optimism amid losses in the futures tied to the S&P 500 index. Attention now turns towards the US Michigan Consumer Sentiment data and virus updates for fresh impetus on the prices.

AUD/USD technical levels

Credit: FX Street

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