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Risk on sends AUD higher
AUD - Australian Dollar
Friday’s overnight session saw the AUD initially break through the 0.7200 handle to touch intraday highs of 0.7243 as sentiment was bolstered by news of Trump’s support of a COVID-19 support plan in the US. With the NZD also rising, the AUD/NZD cross was pushed lower, falling from 1.0875 to 1.0850 through trade.
Sentiment was also helped as markets warmed to the idea of a Biden election win. With the US election expected to be a key driver of markets, and the AUD over the coming months, the prospect of a clear Biden win, and therefore no contested result, has been welcomed by markets.
Monday is shaping up to be a quiet day on the data front, with only New Zealand migration data and a public holiday in the USA. Traders will be looking towards the Tuesday sessions, where we will get an update on the UK labor market as well as CPI data for the Eurozone. These risk events could see some movement in AUD/EUR and AUD/GBP if any surprises present themselves.
Key Movers
As we touched on above, markets remain in risk on mode following trump’s support of the COVID-19 support plan and reduced likelihood of a contested election result in the US. The safe haven USD has been pushed 0.6% lower, the EUR/USD has risen to levels above 1.1800 again and USD/JPY has fallen slightly to the mid 105’s.
In commodities, oil futures were down over 1% on the day whilst copper and gold both rose 1.3% and 1.9% respectively. The S&P500 also closed up nearly 1% to deliver its highest close in a month.
Expected Ranges
AUD/USD: 0.7200 - 0.7300 ▲AUD/EUR: 0.6050 - 0.6190 ▲
GBP/AUD: 1.7850– 1.8120 ▼
AUD/NZD: 1.0800 - 1.0900 ▼
AUD/CAD: 0.9430 - 0.9555 ▼