- AUD / USD’s pullback from three-week highs was short-lived.
- The focus is on the US elections, Wall Street closed with gains.
The AUD / USD rally from Monday’s lows of 0.6985 accelerated Tuesday on Tuesday on the back of positive sentiment in stocks, propelling the pair to new three-week highs at 0.7175. It then fell back to find support at the 0.7140 area and after the close of Wall Street, it approached the highs.
Weak dollar, US votes
The Australian dollar rose on Tuesday amid a strong appetite for risk, with all eyes on the US presidential election. Stock markets rose on Tuesday on the expectation that the result of the presidential elections will not generate major problems and that it could favor an early approval of a new fiscal stimulus package.
The movements are being moderate and an increase in volatility would be expected as the hours go by, when the results of the elections are known. The first states to close voting do so at 23:00 GMT.
The aussie was among the best-performing currencies on Tuesday despite an interest rate cut from the Reserve Bank of Australia (RBA) and an increase in the buy program. The RBA announced that it could increase it further if necessary.
Credits: Forex Street
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