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Sep 08 - 07:55 PM

AUD/USD - Risk Aversion, Sliding Commodity Prices Take A Toll

By Krishna K  —  Sep 08 - 06:40 PM
  • AUD/USD on the defensive to start the week after closing 1.05% lower on Fri

  • Hit hard by risk aversion; Wall Street drops sharply on mixed U.S. jobs data

  • Slowing labour market, declining odds of a sizable Fed Sep rate cut hit risk

  • Chances of a 50 bps Fed rate cut in Sep drop to 29% from 43% before data

  • Sharp weekly declines in prices of oil, copper and iron ore weigh on AUD

  • AUD/JPY selling undermines AUD; AUD/JPY down 1.85% Fri, dropped 4% last week

  • U.S. CPI, China inflation, trade and monthly activity data key this week

  • Support 0.6640-45, resistance o.6700-05, 0.6725-30; Fri range 0.6767-0.6660

  • For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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