- AUD/USD braces for impact as Ukraine continues to come under attack from Russia.
- Risk appetite is weakening again in Asia after a positive rally on Wall Street.
AUD/USD is under pressure following a lackluster London ahead of a volatility storm at the New York open which saw selling to test below 0.71 the figure before appetite for the risk will jump back and take the Aussie as high as 0.7178. The pair has changed hands since between there and the Asian session low of 0.7141 so far.
As of this writing, the currency is stable on the session at 0.7160 as traders assess the prospects for further Russian attacks on Ukraine. Markets are bracing for one of the biggest attacks yet on Kiev, as CNN reported:
Russia expected to launch heavy bombardment on Kyiv at 01:00 GMT – CNN citing intelligence
“Ukrainian forces fought Russian invaders from three sides on Thursday after Moscow unleashed the biggest attack on a European state since World War II, prompting tens of thousands to flee their homes,” Reuters reports.
With such an escalation in attacks on the nation and no sign of a ceasefire, investors who may have regained much of their appetite for riskier bets may start to pull back again, which should weigh on stocks. global currencies and high beta currencies, such as AUD.
Despite Wall Street’s rebound, MSCI’s stock gauge across the globe closed 0.46% after earlier falling more than 3% to its lowest level since March 2021.
However, the Nikkei is 1.5% higher and the XJO is in the green, but narrowly.