AUD/USD: Extending three-day losing run on broad-based risk aversion
- Aussie dollar is on the offer with stocks, oil, and other risk assets.
- Measures announced by President Trump fell short of market expectations.
AUD/USD is flashing red for the fourth straight day amid broad-based risk aversion.
The currency pair is currently trading at session lows near 0.6430, representing a 0.30% drop on the day, having posted moderate losses in the previous three trading days.
AUD is not the only risk asset on the offer. The Kiwi dollar is also losing altitude along with the equity markets and oil. Notably, the futures on the S&P 500 are currently down over 3.5% and oil benchmarks - Brent and WTI - are shedding 4% at press time.
The US stock futures were already trading in the red in early Asia and extended losses after an address from President Donald Trump failed to quell concerns regarding a possibility of a marked economic slowdown due to coronavirus outbreak.
Trump announced a 30-day suspension of travel from Europe and announced financial relief for workers who are ill. The President also announced $200 billion in additional liquidity in the fight against coronavirus.
However, investors were looking for a more robust fiscal response to contain the negative impact of the virus outbreak and sold risk aggressively.
Looking forward, the AUD/USD pair is likely to continue tracking the risk sentiment in the broader market. The Australian government announced an A$17.6 billion fiscal stimulus earlier Thursday. So far,
however, that has failed to bring cheer to the domestic equity markets and the Aussie dollar. Australia's benchmark equity index S&P/ASX 200 is currently down near 5%.
Technical levels