AUDUSD justifies risk-barometer status despite US Dollar’s retreat

After witnessing mixed PMIs from major economies and a hawkish Fed halt, not to forget the ECBs dovish hike, traders appear mostly cautious on early Monday. The reason could be linked to the anxiety ahead of the top-tier inflation clues from Germany, Europe, the US and Japan. Additionally, fresh debt woes in China, triggered by Evergrande updates, also amplify the downbeat sentiment.

It‘s worth noting, however, that the US Dollar fails to cheer the risk-off mood amid the market’s preparations for this week‘s US consumer confidence, Durable Goods Orders and the Fed’s preferred inflation gauge. Also, sluggish yields at the multi-year high are an extra challenge for the Greenback.

Even so, the AUDUSD pair remains depressed due to its ties with China, as well as dovish RBA concerns, whereas the Gold price struggles for clear directions after bouncing off a five-week-old rising support line the previous day. Further, Crude Oil price prints mild gains after posting the first weekly loss in four while EURUSD, GBPUSD and USDJPY remain mostly directionless.

Elsewhere, BTCUSD and ETHUSD also remain pressured amid heavy option positions and ETF approvals.

Following are the latest moves of the key assets:

• Brent oil picks up bids to $93.85 after snapping three-week winning streak, up 0.40% intraday at the latest.

• Gold price prints mild losses to reverse the previous days corrective bounce around $1,923 by the press time.

• USD Index stays directionless around 105.65-70 as we write, after 10-week uptrend.

• Wall Street closed with minor losses but the Asia-Pacific stocks edged lower. That said, equities in Europe and the UK print mild gains at the latest.

• BTCUSD and ETHUSD print mild losses to around $26,200 and $1,580 as we write.