The Australian dollar surged as investors focused on recovery from the pandemic | Instant News

Australian banknotes and coins.

Florent Rols | Pictures of SOPA | LightRocket via Getty Images

The currency risked rising against the dollar on Monday as investors saw positive signs of China’s recovery in coronaviruses and bet on easing in China-US. tension.

Trade sensitive Australian dollar surged 1% to a three-month high of $ 0.6742 to lead a broader advance that puts the dollar near an 11-week low on a basket of currencies.

US President Donald Trump made no steps to impose new tariffs on China during a press conference on Friday in which he outlined his response to tightening Beijing’s control of Hong Kong.

“That removes the short-term risk of any intensification of the US-China trade war,” said Ray Attrill, chief FX strategist at National Australia Bank in Sydney.

In addition, investors were encouraged by the Caixin / Markit Purchasing Managers Index which showed a marginal but unexpected increase in Chinese factory activity last month.

That New Zealand Dollars up about half a percent, along with pound and Canadian dollars. Against a basket of currencies dollar down 0.2% to 98,031, close to 11-week lows of 97,944 touched last week.

The atmosphere of the market became famous because major US cities were preparing to face violence the following night, because demonstrations against police brutality had turned into a wave of anger.

Analysts said the unrest was alarming, and might be a clue to the November short-term Presidential election, but it was not possible to change short-term optimism about the U.S. economy.

“It’s hard to be a bear at the moment and the path of least resistance to risk remains upside down in my opinion,” said Chris Weston, head of research at the Melbourne broker Pepperstone.

Aussie going forward

The Australian dollar is a prominent winner, and reaches the highest point in the pair as well as the dollar – rising to a three-month high against yen and 10-month highs in loonie.

The advance was not only supported by a better mood, but also by the soaring price of the main export – iron ore – which hit record highs on Monday.

“We are quite optimistic about the Aussie this week,” said Commonwealth Bank of Australia analyst Joe Capurso.

“Market participants believe that the worst of the health and financial and economic crisis is now behind us … and if we get past the worst, then commodity currencies tend to improve and the US dollar tends to underperform,” he said.

The Reserve Bank of Australia meets to set monetary policy on Tuesday, but it is not possible to change arrangements because Governor Philip Lowe said clearly last week that further easing or negative levels might not be needed.

At another place euro rose 0.2% to $ 1.1135, just below the two-month high of $ 1.1145, as investors gained confidence from the European Union’s plan for a coronavirus recovery fund.

That pound hit a three-week high of $ 1.2414 when Britain moved out of lockdown. The Chinese yuan was 0.2% stronger at 7.1996, following Friday’s aid rally in offshore trade in hopes of easing China-US. tension.


image source

to request modification Contact us at Here or [email protected]