Global financial markets experienced a tumultuous start to the week, influenced by heightened risk aversion among investors. This shift in sentiment was largely driven by US President Trump's announcement of tariffs on Canada, Mexico, and China over the weekend, sparking widespread concerns of an escalating global trade war. As a result, spot prices have declined, nearing a two-year low, while the gold price has retraced to below $2,800, having previously hit a record high of $2,817 just last Friday.
The Australian dollar also felt the pressure, as its performance is closely linked to Australian Retail Sales and China's Purchasing Managers' Index (PMI) data. The AUD/USD pair continued its downward trend, falling below 0.6100 during the Asian session on Monday. Meanwhile, the EUR/USD pair faced heavy selling pressure, diving to a three-week low at 1.0200, further highlighting the market's cautious stance.
In addition to these developments, the cryptocurrency market has not been immune to the recent volatility. Bitcoin, Ethereum, and Ripple all closed below their key support levels, experiencing significant declines of 4.3%, 13%, and 12.6%, respectively. This downturn reflects the broader market unease and the challenges facing digital currencies amid ongoing geopolitical tensions.
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