AUDUSD drops to fresh yearly low on RBA’s dovish halt, risk aversion

Markets remain jittery, mostly downbeat, on early Tuesday as US data and Federal Reserve (Fed) officials‘ comments keep the US Dollar on the front foot by defending the US central bank’s bias for “higher for longer” rates. It‘s worth noting that the economic numbers and the central bankers outside the US haven’t been too optimistic and in turn join the US-China tension to also strengthen the risk aversion.

With this, the US Treasury bond yields and the US Dollar remain on the front foot while the riskier assets like commodities, equities and the Antipodeans hold lower grounds. That said, the AUDUSD aptly justifies its risk-barometer status while the Reserve Bank of Australias (RBA) dovish halt exerts additional downside pressure on the Aussie pair.

Further, NZDUSD fails to cheer improvement in the NZIER Business Confidence data for the third quarter (Q3) whereas Oil Price drops amid talks of receding demand and softer supply cuts in the future from the OPEC+ group. Additionally, the Gold Price renews the Year-To-Date (YTD) low whereas the Asia-Pacific equities edge lower even as the Wall Street benchmarks closed mixed.

Elsewhere, the BTCUSD and ETHUSD consolidate the previous days retreat from a seven-week high amid cautious optimism in the crypto markets.

Following are the latest moves of the key assets:

• Brent oil declines to a three-week low as energy sellers prod $91.00 during a four-day losing streak at the latest.

• Gold price declines to the fresh seven-month low of around $1,815 before bouncing off to $1,822 by the press time.

• USD Index stays defensive around 107.00 as we write, after refreshing the yearly high.

• Wall Street closed mixed but the Asia-Pacific stocks edged lower. However, equities in Europe and the UK remain inconclusive at the latest.

• BTCUSD and ETHUSD pare the previous days losses around $27,600 and $1,660 as we write.