AUD / USD cuts the losses of the previous days and retreats above 0.7100

• AUD / USD bounces strongly off 0.7020 to hit session highs at 0.7135.
• Optimism about a stimulus deal in the US fuels the Australian.
• AUD / USD resumes uptrend after corrective move – Credit Suisse.

The australian dollar has made an impressive comeback on Wednesday to reverse most of the ground lost after a four-day losing streak. The Aussie rallied from Tuesday’s low of 0.7020 to appreciate more than 1% on the day, extending to session highs at 0.7135.

The Australian explodes in a market with a risk appetite

AUD / USD has been fueled by widespread risk appetite and investors are increasingly confident in the prospects for a coronavirus stimulus deal in the US.

President Trump’s comments suggesting he’s willing to accept a big aid bill despite opposition from Senate Republicans have raised optimism, sparking a flood of risky currencies, to the detriment of the safe haven dollar. sure.

In this context, the aussie has managed to ignore the negative pressure of the previous days generated by the increasing possibilities of a greater monetary adjustment in November. The RBA confirmed yesterday that the issue of a rate cut had been on the table at the previous meeting, which confirmed market expectations and increased downward pressure on the AUD.

AUD / USD expected to resume uptrend – Credit Suisse

Credit Suisse’s currency analysis team views the recent AUD / USD pullback as a correction before resuming the uptrend: “AUD / USD remains in a short-term corrective period, which will likely extend longer in the short term, but it has to be biased by an eventual resumption of the central uptrend following the completion of a large ‘head and shoulders’ base in July