AUDUSD remains under pressure and continues falling.
The Australian Dollar is getting weaker against the USD each day. The current quote for the instrument is 0.7117.
The statistics published in the morning showed that the Building Approvals lost 12.9% m/m in October after reducing by 3.9% m/m in September and against the expected decline of 1.4% m/m.
The data, of course, had a negative influence on the Aussie behaviour, but the key negative factor is the fundamental background and market conditions.
It’s all about the coronavirus. Capital markets are experiencing great uncertainty due to the new COVID-19 strain found in South Africa. The World Health Organization already called it dangerous. Market players quickly included this information in their prices and calmed down but only until the moment when Moderna dropped a hint of doubt that the company might not be able to adjust its vaccines to the new strain quickly. This resulted in the market collapse on Tuesday and forced many investors to escape risks.
In fact, the current weakness of AUD consists of two factors – common negative sentiment on the market and unimpressive domestic news.
