Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
AUD/USD is driven by the news
Information is not investment advice
The Australian dollar will be quite volatile in the upcoming sessions. The near-term pressure on the Australian currency is related to worse-than-expected retail sales and trade balance figures released in Australia on Thursday. Earlier this week, comments of country’s central bank, on the contrary, had pushed AUD/USD up from the 2019 lows. The RBA Governor Lowe will speak on Friday. In addition, volatility will come from the US side of things, as America will publish Nonfarm Payrolls (NFP). Finally, don’t forget the market’s changeable attitude towards the threat of coronavirus which is also driving the AUD.
So far, AUD/USD met resistance around 0.6775. Still, as long as the pair is above the 50-period MA at 0.6735, it is safe from the decline to 0.6680 (previous minimums). On the upside, the next resistance is in the 0.6800/10 area ahead of 0.6850.
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
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US President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world's largest economy and accelerate its response to COVID-19
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