The Australian dollar (AUD) against the US dollar (USD) has shown resilience, maintaining its consolidation phase as it advanced for the third consecutive day on Tuesday. The currency pair successfully held above the critical 0.6500 mark, reflecting a cautiously optimistic market sentiment amid improving risk appetite.
As all of the above attracts investors looking to participate in the next economic recovery, the mood in financial markets seems to be turning bullish. On the US-China bilateral front, discussions are said to be going very well. This unexpected progress has buoyed investor sentiment across the asset class spectrum – equities, commodities and beyond.
As Ripple’s huge climb continued into September, AUD/USD’s positive trend has completely reversed. Following the heavy sell-off of last week, Ripple’s XRP price action has noticeably relaxed. The company has since been accelerating its investments across the Asia-Pacific region. While this strategic move is indeed good for encouraging growth, this has proved insufficient to hold the uptrend that was established on Monday.
“Ripple uptrend stalls as Ripple bolsters Asia-Pacific investment.”
Gold prices in the Comex market have remained firm. Gold prices held onto small gains as of Tuesday morning. Gold actually tapped a new daily low close to the $3,300 level vs $2,300 as previously reported. The thawing of the relationship between the US and China has buoyed broader market sentiment. This weakened the prospects for gold’s use in safe-haven returns amid these volatile and risk-off driving trends.
That improving risk appetite among investors has continued to push US equities higher. With the prospect of better trade relations between the world’s two largest economies, market participants are showing increased confidence in equities and other riskier assets.
Overall, technicals paint the picture that AUD/USD continues to form a consolidation. Outside influences are what analysts are most closely watching that could influence its path moving forward. With geopolitical tensions seemingly deflating and a patchwork of economic indicators sending conflicting messages, traders are on the lookout for new trends that could change market dynamics.