Economy Forex News

AUD/USD falls sharply

Sponsored
  • Retail sales rose +4.9% m-o-m in October in Australia, vs. 2.5% expected.
  • New risk aversion in the markets due to new covid variant weighs on AUD.
  • The pair remains under pressure, close to the yearly lows set in August.

The AUD/USD pair is moving sharply lower during the European session on Friday, amid concerns about a new covid variant that is affecting market sentiment.

The AUD/USD pair is recovering marginally from its daily lows of 0.7112 at the time of writing, but it remains trapped around 0.7150. Near the yearly lows reached in August, the pair is still under pressure.

AUD/USD

MetaNews.

Retail sales in Australia climbed +4.9 percent m-o-m in October, vs 2.5 percent projected, according to statistics released earlier in the day by the Australian Bureau of Statistics. As the country relaxes from the blockades. Due to Christmas shopping and the Coronavirus, sales have been buoyant.

The upbeat data has failed to provide upside momentum in the pair

The encouraging data has failed to give upside momentum in the pair, which has fallen dramatically due to risk aversion. Which favors the safe-haven USD and weighs on the AUD, which is seen as riskier.

A new strain of the virus fueled fears in the markets. Formally known as B.1.1.529, related to South Africa and potentially immune to vaccines. The World Health Organization (WHO) has convened a special meeting to discuss the new strain of the virus and the anxieties it has sparked. In order to confirm its classification as a “variant of concern.”

According to Reuters, scientists added, “The South African variety might be able to elude immune reactions. British authorities believe it is the most serious variation to date, are concerned that it may be resistant to vaccines, and have imposed travel restrictions to South Africa as a result.”

For the rest of the day, there will be no major economic data releases, so investors’ focus will be on risk appetite and commodity-related news.

Avatar

Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
Follow Me:

Related Posts