EURUSD is trading under pressure below 1.0300 as risk-off sentiment intensified on surging covid cases and fresh lockdowns in China. The US Dollar cheers a flight to safety as well as hawkish Fed commentary. A light calendar ahead.
GBPUSD is kicking off the week on the wrong footing amid resurgent safe-haven demand for the US Dollar. China’s covid woes-induced risk aversion weighs negatively on the higher-yielding Pound Sterling ahead of BoE policymaker Jon Cunliffe’s speech.
USDJPY has prospects for a significant bullish correction in the days ahead.
The AUDUSD pair has dropped to near 0.6640 in the Asian session as a sheer decline in risk appetite has impacted risk-perceived assets. The asset is declining after facing barricades around 0.6720 as the US dollar index (DXY) added gains further. The DXY has refreshed its weekly high at 107.38 and is expected to add more gains ahead.
NZDUSD is displaying a sideways performance around 0.6160 in the early Tokyo session as investors are awaiting the release of the interest rate decision by the People’s Bank of China (PBOC). While the ultimate trigger that will guide decisive action will be the announcement of the monetary policy by the Reserve Bank of New Zealand (RBNZ) this week.
The USDCAD pair has rebounded after a corrective move to near 1.3370 in the Asian session. The asset has displayed recovery following the footprints of the US dollar index (DXY) a subdued performance at the oil counter. The DXY is attempting to establish above the critical hurdle of 107.00 as the risk profile is supporting the risk-averse theme.
The USDCHF has advanced gradually to a near 10-day high of around 0.9570 in the Asian session. The asset is struggling to extend gains ahead as investors are shifting their focus toward the release of the US Durable Goods Orders data, which is due on Wednesday.
Asian share markets and oil prices slipped on Monday as investors fretted about the economic fallout from fresh COVID-19 restrictions in China, with resulting risk aversion benefiting bonds and the dollar.
Gold price is posting small losses so far this Monday, extending the previous week’s corrective mode from three-month highs at $1,787. A weekly close below the $1,750 psychological level combined with a renewed uptick in the USD has exerted downside pressure on Gold price at the start of the week.
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