- AUD / USD moved lower on Tuesday after the RBA announced its latest monetary policy decision.
- A combination of factors helped limit the decline and gain upward traction in the pair.
- The rise is likely to remain limited amid uncertainty about the outcome of the US elections.
AUD / USD has managed to bounce over 75 pips from post-RBA lows and has soared to daily highs, around the region of 0.7100, at the start of the European session on Tuesday.
The pair has witnessed some selling during the early part of the trading action on Tuesday after the Reserve Bank of Australia (RBA) cut its official cash rate to a new all-time low of 0.10%. The RBA also announced that will expand its bond purchase program by A $ 100 billion to prop up the Australian economy, which has been affected by the coronavirus crisis.
However, the fact that the measure was largely discounted in price, immediate market reaction turned out to be short-lived. The AUD / USD pair has caught some buying near the 0.7030-25 region and has turned positive for the second day in a row. The rally has helped the pair rally further from the lowest level since July 20, below the 0.7000 region reached in the previous session.
Despite concerns about the potential economic consequences of coronavirus-induced lockdowns in Western countries, optimistic market sentiment has weighed on the safe-haven US dollar and it has fueled some cash flows towards the higher perceived risk Australian dollar. The USD has been further pressured by uncertainty about the outcome of the US presidential election on Tuesday.
It is worth mentioning that opinion polls have been indicating an advantage for Democratic candidate Joe Biden over current President Donald Trump. However, the fighting in key states on the battlefield is tight, forcing investors to stay on the sidelines before directly positioning themselves on a particular US election outcome.
In the absence of major economic releases from the US, investors’ attention will remain on political developments in the US Prior to the key event, some repositioning operations may still instill some volatility and help investors take advantage some significant opportunities.
Credits: Forex Street

Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.