The aussie and kiwi back off as stocks lose momentum
The major currencies snapshot has a sense of risk-off element to it but the movement on the day has been relatively mild for the most part. As stocks fall flat to trade more mixed on the session, the aussie and kiwi gave up early gains but are sitting just mildly lower.
AUD/USD is down to 0.6545 from a high of 0.6570 earlier while NZD/USD has eased to 0.6120 from around 0.6150 levels at the start of the session.
The dollar is continuing to hold its ground against the rest of the bloc as we see little changes so far in European trading. EUR/USD is now at 1.0872, after having hit a high of 1.0891 earlier but is above early levels of around 1.0860 to kick start the morning.
The slew of economic data from Europe has been poor, as we see the economic damage from the virus outbreak being worse-than-expected on almost all counts this morning.
The only saving grace for the market is hopes that the ECB will deliver something or at least a firm message/commitment to further stimulus measures down the road.
At the same time, just be mindful that it is still month-end trading and there will be some parts of Europe that will be observing a long weekend starting from tomorrow. Hence, positioning flows are also a factor to consider in this environment.
