Australian Dollar Climbs Amid Risk Appetite
14 October 2020 - 5:39PM
RTTF2
The Australian dollar strengthened against its major
counterparts in the European session on Wednesday, as European
shares rose despite concerns about halted Covid-19 vaccine trials
and a stimulus deadlock.
U.S. House Speaker Nancy Pelosi rejected a $1.8 trillion relief
proposal from the White House, claiming the proposal "falls
significantly short of what this pandemic and deep recession
demand." She still hopes a deal can be reached.
Senate Majority Leader Mitch McConnell has announced the Senate
will vote on a more limited stimulus bill once lawmakers return
from recess on October 19.
Investors focused on a summit of EU leaders on Thursday and
Friday, in which Brexit talks are on the agenda.
EU leaders told the U.K. on Tuesday to offer concessions on
fisheries, dispute settlement and guarantees of fair competition in
order to progress towards the agreement.
UK Prime Minister Boris Johnson is set to hold a call with
European Commission President Ursula von der Leyen later in the
day.
Survey data from Westpac showed that Australia's consumer
confidence improved sharply in October following the announcement
of the federal budget and the ongoing success in containing the
Covid-19 outbreak.
The Westpac-Melbourne Institute Index of Consumer Sentiment
advanced 11.9 percent to 105.0 in October from 93.8 in
September.
The aussie approached a 2-day high of 1.6337 versus the euro,
after falling to 1.6407 at 9:15 pm ET. The aussie is poised to find
resistance around the 1.62 area.
The aussie recovered from a 1-week low of 75.36 against the yen,
reaching as high as 75.72. Further uptrend may take the aussie to a
resistance around the 78.00 level.
Reversing from its early lows of 0.7152 against the greenback
and 0.9399 against the loonie, the aussie edged higher to 0.7182
and 0.9430, respectively. The aussie is seen finding resistance
around 0.75 against the greenback and 0.96 against the loonie.
In contrast, the aussie hovered at more than a 2-week low of
1.0753 against the kiwi. Next key support for the aussie is seen
around the 1.06 region.
Looking ahead, U.S. PPI for September is scheduled for release
in the New York session.
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