It was somewhat of a turnaround Tuesday as stocks and yields rebounded, despite some mixed tones throughout the trading day yesterday. But at the end, the market settled with a calmer mood and things are looking more tepid so far on the day.
The aussie is keeping slightly lower after a poor retail sales report and as the virus situation looks to be taking a turn for the worse.
AUD / USD hovers at the day’s lows and is testing the 0.7300 level, which will be a focus point in European trading. AUD / NZD has also retreated from 1.0600 to 1.0577.
Elsewhere, US futures are flattish and so are Treasury yields, leaving other major currencies little to work with for the time being.
The market may have taken in a breath of relief yesterday but the wounds from Monday’s risk rout is still fresh so there are some cautious undertones.