AUD pressured by crash in gold prices

AUD/USD was in focus as the crash in gold prices pressured the Australian dollar, which is a commodity-linked currency. Australia produces gold. AUD/USD was down 2% at 0.7359 in the session and touched as low as 0.7326 as gold dropped abruptly as much as 5.5% in morning trade to a low of 1072.35 from Friday’s close of $1134.47.

USD/JPY had a quiet start to the week since it is a holiday in Japan to celebrate Marine Day. USD/JPY opened on Monday at 124.00 and traded between 123.96 and 124.20. The pair was last at 124.19. But the US Dollar was broadly bid due to the gold crash.

EUR/USD opened Asia in at 1.0835 after selling off late in the US session. After trading to 1.0843 in early Asia, the EUR/USD tracked lower. The big drop in gold prices (down more than 3% and below 1,100) gave the USD a broadly bid tone. EUR/USD traded to 1.0820 before steadying.

GBP/USD opened on Monday at 1.5606 and traded between 1.5583 and 1.5610, last at 1.5596. Cable was mostly sidelined in a low key affair and most of the market’s focus was on commodities, due to the gold crash and AUD weakness.

USD/CHF opened on Monday at 0.9622 and traded 0.9609-32 in Asia; last at 0.9632. EUR/CHF opened at 1.0414 and traded 1.0114-265 in Asia; last at 1.0426.

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