The Australian Dollar improved. Overview for 04.11.2020
AUDUSD rose to its four-week highs after the RBA’s decisions.
The Australian Dollar was behaving rather illogical after the Reserve Bank of Australia decided to cut the rate and expand the stimulus program – the national currency went upwards against the USD. The current quote for the instrument is 0.7112.
We’d like to remind you that yesterday the Reserve Bank of Australia cut its benchmark rate from 0.25% to 0.1% and expanded the stimulus program. As a rule, loosening of the monetary policy puts pressure on the Aussie but the national currency moved upwards instead. Probably, market players liked the fact that the regulator shifted focus to support the country’s economy and its real sector in order to improve employment. The RBA’s policy has clear targets and that’s really great support for the Aussie.
The statistics published earlier showed that the Retail Sales in the country lost 1.1% m/m, which is still better than the expected reading (-1.5% m/m).
In the nearest future, the Aussie, just like other traded currencies, will get under the influence of high market volatility due to presidential elections in the USA, that’s why the current sentiments may easily change.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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