- AUD/USD opens the week on the wrong footing, eyes 0.6300 once again.
- US Dollar jumps on safe-haven demand as Heart East military conflict rattles market.
- All eyes now remain on geopolitical tensions and US CPI data this week.
AUD/USD is falling hard toward 0.6300 in early Asian trading on Monday, having faced rejection at 0.6400 in the aftermath of the US Nonfarm Payrolls data on Friday.
The pair opened Monday’s trading, with a 57-pip bearish gap, licking its wounds in a reversal from multi-day highs.
The renewed weakness in the AUD/USD pair can be attributed to a unusual wave of threat aversion at the start of the week in Asia, as the weekend’s military conflict in the Heart East between the Hamas motion in Palestine and Israel rattles threat sentiment.
Patrons travel to the safe-haven US Dollar, fearing escalating geopolitical dangers in the Heart East, which has sent Oil note by means of the roof. Markets remain afraid over the potential impact of the renewed Oil note surge on global inflation and increase outlook, especially at a time when central banks are quiet reeling from the pain triggered by Russia’s invasion of Ukraine, back in early 2022.
Original traits around the Heart East conflict will be closely adopted for further impact on the safe-haven US Dollar and, in flip, on riskier assets such as equities, Australian Dollar, and many others. Patrons also remain cautious heading into the all-important US Consumer Build Index (CPI) week.
At the time of writing, the US S&P 500 futures, a threat barometer, are falling 0.80% on the day while the US Dollar Index is up 0.25% on the day, leaving AUD/USD down nearly 0.30% to trade near 0.6360.
Business AUD/USD: Technical ranges to consider
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