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Aussie dollar strong against USD

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The Aussie dollar rose against the United States Dollar since AUD/USD price action bottomed in March amid peak Coronavirus panic. Alongside risk that is improving, in addition to a notable replacement lower in money volatility, Aussie bulls have steered the sentiment-linked AUD/USD broadly greater. Indicated by one-week AUD/USD implied volatility readings, volatility is likely to subside further, which could help in keeping the buck that is Australian demand barring no unforeseen bearish developments unfold.

That said, the dollar that is australian lost upward momentum more recently. This appears to correspond with extended coronavirus lockdown measures put into effect across major regions of Australia and follows an initial reaction that is upbeat the RBA conference. Melbourne, for example, was placed under a stage-four lockdown for six weeks while a lockdown that is stage-three announced for broader Victoria.

The economy that is australian AUD price action likely stands to handle headwinds in change – particularly seeing that there is proof that the rebound in economic task has already showed signs of stalling. Not to point out, as detailed in the latest RBA meeting press statement, the shape of the recovery that is economic “dependent upon containment for the virus.”

Also worth mentioning, the RBA outlined how a bank that is central to resume purchasing 3-year Australian Government Securities (AGS) after yields climbed above 25-basis points and its yield curve control target. This is certainly enough time that is first Reserve bank of Australia purchased AGS in several weeks. Correspondingly, if the upcoming release of RBA mins provides a deeper undertone hinting at a need for more support that is monetary there might be potential for Australian Dollar strength to sputter out. The Aussie dollar rose against the United States Dollar and sparks interest in currency.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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