AUD / USD Holds Near Yearly Lows Above 0.7120 Ahead of Australian Data, USD Softens

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  • AUD / USD remains moderate on the first trading day of the week.
  • The Australian dollar is losing to the greenback due to a slightly bullish market.
  • The US dollar is retreating from higher levels amid risk aversion.

AUD / USD is treading water during Monday morning’s Asian session. The pair continued to trade under the influence of weaker momentum from the previous week.

As of this writing, the AUD / USD is trading at 0.7133, down 0.01% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals, slips from recent highs as risk appetite improves with global equities and the rise benchmark US Treasury yields.

The greenback remained higher overall as investors turned to the safest assets over fears the Delta coronavirus variant could derail the global economic recovery just as central banks begin to reverse stimulus measures induced by the COVID-19 pandemic.

On the other hand, the Aussie lost ground as investors assessed the impact of the extended lockdown in Sydney and the nighttime curfew until the end of September.

Meanwhile, the RBA meeting minutes released the previous week showed the central bank’s concern over the recent outbreaks in Australia and their effect on the economic recovery amid high uncertainty about the outlook. for the second half of 2021.

It should be noted that S&P 500 futures are trading at 4,437.50, up 0.01% for the day.

For now, traders are waiting for the Commonwealth Bank Australia Purchasing Managers’ PMI (PMI) and the US Markit PMI to negotiate further trading momentum.

Additional AUD / USD levels

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