AUD/USD sinks in tandem with gold prices

By FXStreet FXStreet (Mumbai) – Despite persisting risk-on trades, the Aussie remains heavily offered and trades below 0.72 barrier, mainly tracking losses in gold prices.

AUD/USD eyes 0.7155 – 100-DMA

Currently, the AUD/USD pair declines -0.75% to 0.7175, hovering close to fresh session lows struck at 0.7166 in early Asia. The Aussie bears are relentless this session, keeping the pair submerged into losses ahead of a solid 100-DMA support, a break of which will trigger a fresh sell-off of nearly 50-pips at one go.

The AUD/USD pair stalled its recovery near 50-DMA at 0.7186 and reverted to daily lows following the renewed sell-off seen in gold prices. Gold futures on the Comex witnessed fresh selling interest in Asia and drop over 1% to $ 1066/ oz., in a delayed reaction to the Fed rate hike decision and weigh heavily on the resource-linked Australian dollar.

Moreover, the USD bulls continue to ride higher against its major competitors as Fed fulfils its promise of a rate hike and expects to raise rates at steady pace next year depending on the US economic performance] in light of lower inflation. The USD index rises 0.46% to 98.86. Looking ahead, markets will continue to track the broader market sentiment …read more

Source:: FX Street