AUD/USD Extends Weekly Losses

The AUD/USD pair slides for the second consecutive day, despite a vow of a risk-on market mood in the financial markets, spurred by an announcement of Ukraine not insisting on joining NATO. The AUD/USD is trading at 0.7280, still down 0.47%.

Earlier in the day, the market mood was dismal, spurred by no advancement on negotiations between Russia-Ukraine. However, developments in the last hour, linked to one of Russian President Vladimir Putin’s conditions, to a ceasefire, appear to be fulfilled, in what seems to be a nod to Russia, to remain neutral.

US equity markets jumped off the lows and reacted positively to the headlines, gaining between 1.06% and 2.13%. Gold retraced from daily highs in the commodities complex, while US crude oil benchmark WTI is almost flat, though above $121 per barrel. Meanwhile, as portrayed by the US Dollar Index, the greenback drops 0.30%, sitting at 99.000.

In the overnight session, news from the European Union (EU) getting ready to jointly issue a bond on a considerable scale to finance energy eased the market mood some. However, demand for safe-haven peers and rising US Treasury yields put a lid on the AUD/USD.

The economic docket for both countries lacks the market-moving news expected by market players. Reserve Bank of Australia’s Governor Lowe would give new statements and remarks, while on Wednesday, the US economic docket would feature JOLTs Jobs Openings.

During the overnight session for North American traders, the AUD/USD jumped off Monday’s lows around 0.7313, reached a daily high around 0.7347, subsequently dipped below the S1 daily pivot point at 0.7244, to then stabilize around 0.7280.

The AUD/USD remains neutral-upward biased, but in the near-term, a leg down to the 50% Fibonacci retracement at 0.7204, an area that confluences with the 100 and the 50-day moving averages (DMAs), might be on the cards.

The AUD/USD first support would be the 38.2% Fibonacci level at 0.7260. Once cleared, the AUD/USD would reach the said level.