FxWirePro: AUD/USD erases early gains, plunges over 0.50% amid sudden risk-off after reports of Ukrainian firing

Chart - Courtesy Trading View 

AUD/USD plunged over 0.50% within minutes and is currently trading over 0.53% lower on the day at 0.7155 at around 04:05 GMT.

News of Ukrainian armed forces firing mortar shells and grenades at four localities in the self-proclaimed Luhansk People's Republic early on Thursday rattled markets.

U.S. official was noted saying Russia was increasing troop numbers near its border with Ukraine rather than withdrawing, offsetting a boost to sentiment it had caused overnight.

Further, minutes from the Federal Reserve's January meeting released overnight were less hawkish than expected causing the dollar and bets on aggressive hikes to ease slightly.

Better-than-expected Australia employment data was not enough to lift the Australian dollar amid souring risk.

Data released earlier today showed Australia’s Employment Change rose past 0.0K forecast to 12.9K, below 64.8K prior, whereas the Unemployment Rate remained unchanged to 4.2%, meeting market consensus, in January. 

Further, the Participation Rate rose past 66.0% expected and 66.1% previous readouts to 66.2% during the stated month.

AUD/USD has trimmed some of the losses and has edged higher from session lows at 0.7149. Volatility to rule markets amid Russia-Ukraine tensions.