Mixed sentiment drags AUD/USD from weekly highs

The Australian Dollar is on the defensive front as market sentiment remains mixed. The Federal Reserve: US growth risks are skewed to the downside, capping the US Dollar gains.

The Australian Dollar is losing ground versus its American counterpart amid an obviously mixed sentiment. Additionally; US stocks are wavering due to Fed officials’ remarks moderating the increase of borrowing cost. The US Dollar is staging a recovery against most G8 currencies, as shown by the US Dollar Index (DXY) gaining 0.57% at 106.238.

At the same time, China’s Covid-19 cases breaking the 30K threshold keep investors on their toes. Also, after observing the Thanksgiving holiday in the United States (US), thin liquidity conditions exaggerate market movements. Therefore, the AUD/USD is trading at 0.6743, below its opening price by 0.28%.

European and US stocks are fluctuating. The lack of macroeconomic data for catalyst around the AUD/USD pair keeps traders digesting the latest FOMC meeting minutes. Policymakers denoted that “slowing in the pace of increase would likely soon be appropriate”, these remarks sparked a rally in risk-perceived assets that lasted until the day before US Thanksgiving.