AUD/USD dropped over 100 pips as Asia kicks into risk-off
- AUD/USD reversing the opening bid and drops over 100 pips.
- Risk-off markets kick into gear at the start of the week pertaining to COVID-19 fears.
AUD/USD has fallen in Asia from a high of 0.5825 to a low of 0.5704 in a COVID-19 volatility and risk-off markets. AUD/USD is trading over 1.70% down as the commodity complex continues to bleed and suffer the economic impact of nations on economic lockdown pertaining o the virus.
Copper has spiked to the downside, oil is trading en-route for a ts of the $20 handle and US stock futures opened limit down. We are also hearing that the US Senate has failed to get enough votes to pass the stimulus bill failing on a procedural hurdle. More on that here: US Senate COVID-19 bill fails to get enough votes to clear first procedural hurdle, voting continues.
Meanwhile, the Reserve Bank of Australia has added A$3.7bln to the banking system through repos today easing up a tight US dollar market in addition to last week's decision to start its QE bond purchases of maturities up to 2028. The Australian dollar has fallen sharply on the RBA's recent policy announcements, in line with previous announcements of QE around the globe as the US dollar pulls in safe-haven demand, running to 1 pip from the 103 handle.
AUD/USD Forecast: Australian government announced new stimulus measures