Australian Dollar remains sluggish as risk aversion grips the market

The Australian Dollar (AUD) continues to lose ground on Tuesday, likely driven by risk aversion sentiment. However, the AUD/USD pair edged higher following the release of Westpac Consumer Confidence data during the early Asian hours. The index fell 0.3% month-over-month in May, compared to a 2.4% decline in April, marking the third consecutive month of decline but at the slowest pace in this sequence.

The Australian Dollar could gain support as China announced a broad package to support its struggling property market, including the relaxation of mortgage rules and urging local governments to buy unsold homes. This news may have lifted sentiment in Aussie markets due to the close trade relationship between Australia and China.