AUD/USD struggles below 0.7200 despite firmer sentiment, strong iron ore prices

AUD/USD fades Friday recovery moves, easing to 0.7170 ahead of Monday’s European session.

The Aussie pair initially cheered the market’s optimism and stimulus news from Australia, as well as China, to pare the day-start losses. Though, market fears ahead of the key events lined up for publish during the week seem to weigh on the quote of late.

Australia's Treasurer Frydenberg is expected to announce on Monday, an extension to the government’s existing loan guarantee scheme for small to medium-sized businesses due to expire at the end of December, per Aussie media. On the other hand, Chinese policymakers vowed to use monetary and fiscal policy tools to stabilize the world’s second-largest economy in 2022 during the annual Central Economic Work Conference.

Also positive for the AUD/USD are the firmer prices of its largest export item iron ore. “Iron ore futures for May 2021 delivery rises past 5.0% to 671 yuan ($105.46) per ton,” said Reuters during the Asian session.