The currency and cryptocurrency markets witnessed significant sell-offs as risk aversion dominated the trading environment on Monday. The AUD/USD pair extended its decline below 0.6100 during the Asian session, influenced by Australian Retail Sales and China's PMI data. Meanwhile, major cryptocurrencies, including Bitcoin, Ethereum, and Ripple, closed below key support levels, with Bitcoin dropping by 4.3%, Ethereum by 13%, and Ripple by 12.6%.
The EUR/USD pair also faced heavy selling pressure, diving to the 1.0200 neighborhood—a three-week low. Spot prices for the pair are moving closer to a two-year low, and the pair remains vulnerable to prolonging its multi-month-old downtrend due to intense risk aversion. The recent downturn in the EUR/USD was partly fueled by fears of a global trade war, following US President Trump's tariffs on Canada, Mexico, and China.
Gold prices were not spared from the market turbulence, falling back below $2,800 early Monday. This marked an extension of its correction from record highs, further illustrating the widespread apprehension among investors.
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