- AUD / USD is falling sharply in the second half of the day.
- The major Wall Street indices are posting heavy losses.
- The US dollar index rises towards 90.00 on risk aversion.
The pair AUD/USD It started the new year on a firm footing and came within a couple of pips from the multi-year high it set at 0.7743 last week. However, the sour market forced the pair to fall sharply in the second half of the day. At time of writing, AUD / USD was down 0.65% on the day at 0.7653.
DXY turns north as investors seek refuge
Before the first risk event of 2021, the second round of elections for two Senate seats in Georgia, investors appear to be walking on the sidelines. Additionally, the growing number of COVID-19 infections, especially in Europe, reignites concerns about nationwide lockdowns hurting the global economic recovery.
Reflecting the negative shift in sentiment, the top three Wall Street indices fell more than 2% after opening at new all-time highs. Meanwhile, the US dollar index is virtually unchanged on the day at 89.90 with the dollar finding demand a safe haven.
No macroeconomic data for Australia will be released on Tuesday and risk perception is likely to remain the main driver of financial markets. Later in the day, the ISM Manufacturing PMI report will be featured on the US economic agenda.