Aussie Starts Week Soft in Risk-Off Environment

The Australian dollar started the week soft, opening below the Friday’s close, as the risk-off sentiment continued to prevail on markets, driving investors away from riskier assets.

Geopolitical tensions rise all around the world: in Asia with North Korean missile tests, in Middle East with the US attack on a Syrian base, in Europe with the upcoming French elections, and in America with concerns about the ability of US President Donald Trump to deliver on his election promises. Traders do not feel encouraged to buy currencies tied to commodities and economic growth in such an environment. Additionally, recent economic data, both domestic and from China, was rather lackluster, and that also hurt the appeal of the Aussie.

AUD/USD slipped a bit from 0.7491 to 0.7486 as of 12:38 GMT today, trading near the lowest level since January 17. EUR/AUD was near the opening level of 1.4125 after closing at 1.4107 on Friday.

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