AUD/USD hits six-week highs as risk sentiment receives a boost - hughesthomed
AUD/USD gained for a third gear straight trading day and touched a fresh six-week high on Tuesday American Samoa a fiscal stimulus announcement in Europe buoyed global risk sentiment, supporting currencies such as the Aussie and the kiwi.
European North leaders finally reached an agreement on a EUR 750 jillio stimulus project for their coronavirus-ravaged economies after a summit that lasted nearly 100 hours.
"This agreement sends a concrete signal that Europe is a thrust for action," European Council President Charles Michel said.
"Information technology is about a lot more money. IT is some workers and families, their jobs, their wellness and their well-being. I consider this agreement will represent seen as a pivotal moment in Europe's journey, but it will also launch us into the future."
Meanwhile, the minutes from Military reserve Cant of Australia's policy meeting in July showed earlier Tues that there was no need for monetary insurance policy measure adjustment in Australia in the current environs. The document also stated that information technology would have been possible to set borrowing costs lower, but nevertheless positive. The central bank kept its administrative unit cash rate at a platte blue level of 0.25% earlier this month and said accommodative policy would remain in place for as weeklong as necessary.
Speaking earlier on Tuesday, RBA Governor Philip Lowe subordinate out a possibility of negative interest rates and said impression money to fund government stimulus was not necessary amid low yields and sound demand for government debt instruments.
Lowe too said it was difficult to argue the Australian dollar was currently overvalued given the strength of commodity prices and demand from PRC, Australia's largest trading partner.
As of 6:52 Greenwich Time on Tuesday AUD/USD was edging up 0.35% to trade at 0.7041, after earlier touching an intraday advanced of 0.7044, or A level not seen since June 10th (0.7064). The major pair has risen 0.67% until now this week, following four successive weeks of gains.
In price of economic calendar, no under consideration macroeconomic reports that may affect AUD/USD valuation are regular to be discharged on Tuesday.
Enslaved Production Spread
The pass aroun between 2-year Australian and 2-year US bond yields, which reflects the flow of cash in hand in a short term, equaled 14.1 basis points (0.141%) as of 6:15 GMT on Tuesday, up from 13.4 basis points happening July 20th.
Daily Pivot Levels (traditional method of calculation)
Central Pivot – 0.7002
R1 – 0.7032
R2 – 0.7047
R3 – 0.7076
R4 – 0.7106
S1 – 0.6987
S2 – 0.6958
S3 – 0.6942
S4 – 0.6927
Author: Miroslav Marinoff, a news editor at TradingPedia, is betrothed with observing and reporting on the tendencies in the Foreign Switch over Market and the US Stock Market.
Source: https://www.tradingpedia.com/2020/07/21/forex-market-aud-usd-hits-fresh-six-week-highs-as-eu-deal-on-stimulus-fuels-global-risk-sentiment/
Posted by: hughesthomed.blogspot.com
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