AUD/USD SLUMPS TO NEAR 0.6660 ON CAUTIOUS MARKET SENTIMENT
- AUD/USD extends its downside trend to 0.6660 on a dismal market mood.
- US political uncertainty and PBoC’s surprise rate-cut decision dampen investors’ risk appetite.
- The US Dollar will dance to the tunes of the US economic data.
The AUD/USD pair extends its losing spree for the sixth trading session on Monday. The Aussie asset slides further to near 0.6660 as cautious market sentiment weighs heavily on Asia-Pacific currencies and equities of the world’s largest continent.
Investors’ risk appetite weakened due to uncertainty over the United States (US) Presidential elections and an unexpected rate-cut announcement by the People’s Bank of China (PBoC). The nomination of US Vice President Kamala Harris for leading the Democratic against Donald Trump-led-Republicans has increased political uncertainty as she was endorsed of Kamala Harris by all state Democratic Party Chairs.
In addition to US political uncertainty, the PBoC's surprise rate-cut move to boost liquidity stimulus to spur domestic demand has raised concerns over China’s economic outlook. The PBoC cut its one-year and five-year Loan Prime Rate (LPR) to 3.35% and 3.85%, respectively.
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