The Aussie swings around 0.7350, after recovering from the month-start levels as Asian traders prepare for Tuesday.
Even though covid-led risk-off mood, fears of hurricane and typhoons and the Fed’s tapering talks weighed on the quote early Monday, geopolitical headlines and an absence of data permitted consolidation of losses afterward. However, the cautious sentiment before the US Consumer Price Index for August seems to restrict the pair’s latest moves.
China’s growing boldness in diplomatic relations with the global leaders lately revived market optimism. The same requires the White House to host a ‘Quad’ summit on September 24 with the leaders of India, Australia, and Japan. Nonetheless, China’s crackdown on technology companies, recently on Ali Pay, probes the bulls. At the same time, the headlines concerning typhoon Chanthu and tropical storm Nicholas are increasing the risk.
Speaking about the Covid-19 levels, Australia indicated an uptick in total cases to 1,751 versus 1,672 the previous day. Figures from Victoria, jump to the highest since July 2020 levels, but rumors that the vaccination went over 80% by October keeps AUDUSD buyer’s hopeful.
Among these circumstances, US Dollar Index closed unchanged on Monday’s North American trading, after invigorating the monthly top, whereas the US 10-year Treasury yields 1.5 basis points to 1.32%. Further, the Wall Street benchmarked closed mixed.
Later in the day, comments from Luci Ellis is the Assistant Governor at the Reserve Bank of Australia and Governor Philip Lowe will join the risk catalyst to entertain AUDUSD traders. Nevertheless, the careful mood ahead of the US inflation data, expected to ease in August, will be vital as traders prepare for the Fed’s tapering in the next week.
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