AUD / USD cuts losses and returns to the 0.7200 zone

• The AUD / USD bounce from 0.7050 extends to 0.7200.
• The pair turns positive for the day as market sentiment improves.
• The short-term outlook for AUD is mixed – UOB.

The australian dollar it is undergoing a strong recovery after falling to session lows at 0.7050 during the Asian session on Wednesday. The pair has regained lost ground, helped by brighter market sentiment, to move back towards 0.7200.

The Australian dollar appreciates with the dollar in decline

The Aussie has made up lost ground, turning positive on daily charts with equity markets making strong gains after a negative open in Europe. Investors have welcomed the blue shift in America’s vote count, with Democratic candidate Joe Biden leading the way in the key states of Wisconsin, Michigan and Nevada.

The US dollar, which rose during the Asian session due to the lack of a landslide Democratic victory anticipated by polls, has been losing ground as appetite for risk returned to markets. The close race between the two candidates, however, is keeping the US dollar afloat as the Republicans take control of the Senate and block the fiscal stimulus plan.

AUD / USD outlook remains mixed – UOB

From a technical standpoint, the UOB currency strategy team looks to the mixed pair for the short term: The AUD rose to a high of 0.7223 this morning, but has since declined. Volatile price actions have resulted in a mixed outlook. From here, the AUD could trade erratically, but it is likely to remain between the two main levels of 0.6990 and 0.7300. ”