Terence Wu works in Singapore’s OCBC Bank. He is a strategist. Wu said that the worst is most probably over. This week, the push in higher values in riskier currencies come. This is despite the rapid spread of coronavirus casting doubts over #global recovery. The Greater Miami area of Florida became the latest United States hot spot to roll back its reopening. It ordered all restaurant diners to close on Monday because COVID-19 cases surged nationwide by the tens of thousands and the United States death toll topped 130,000.
Australia shut the border between its two most populous states at one minute before midnight on Tuesday. This is because it is attempting to contain an outbreak of coronavirus in the city of Melbourne. Nevertheless, central banks are pumping cash into the financial systems of the world, and data shows rebounds in activity from April and May doldrums. Thus, the dollar’s 50-day moving average has fallen below its 200-day average. That is often an ominous signal for the greenback.
The United States
According to analysts at Bank of America, the pattern has been followed by a period of dollar weakness in eight out of nine instances since 1980. The Reserve Bank of Australia meets at 0430 GMT ahead on Tuesday.
Joe Capurso works in the Commonwealth Bank of Australia. He holds employment there as an analyst. He said that they expect the RBA will reiterate the Australian economy is performing better than feared. Moreover, any move higher in the cash rate is some years away. Capurso added that the main downside risks of the AUD/USD pair are an escalation of China and the United States tensions. Moreover, partial lockdowns are also a problem.
Better-than-expected United States services data provided the latest boost for confidence for global economic recovery from the COVID-19 pandemic.
This is the current news of the market today.