On the back of rising risk appetite, the United States dollar is broadly weak. After RBA minutes show no rate cut hints, the Australian dollar rises.
As data shows a stable economy, the yuan strengthened to a 16-month high. On no-deal Brexit fears, the pound is vulnerable. Federal Reserve’s policy review on Wednesday will be the key focus.
There are hopes for a COVID-19 vaccine. Moreover, big corporate deals improved investor appetite for riskier currencies. Thus, on Tuesday, the United States dollar dipped against riskier currencies.
Chinese data series shows that there is the steady economic recovery in China. Thus, the yuan jumped to a 16-month high. Policy minutes from Australia’s central bank stopped short of signaling a further cut to the cash rate. Thus, the Australian dollar was bolstered.
Pulling away further from a one-month high of 93.664 touched last Wednesday, the United States dollar index slipped to 92.910.
Dollar and Others
Extending its rise into a fifth straight day, with an initial resistance seen at around last week’s high of $1.1917, the euro raised 0.2% to $1.1889.
The United States dollar traded at 105.66 yen. Thus, it was neat to its two-week low of 105.55 yen touched on Monday.
AstraZeneca returned to British clinical trials of its COVID-19 vaccine, one of the most advanced in development. Thus, it helped sentiment. Meanwhile, BioNTech Se and Pfizer suggested expanding their Phase 3 vaccine trial.
Kyosuke Suzuki works at Societe Generale. He is the director of the forex there. Thus, Suzuki said that it was uplifting that Pfizer has made a clear target of vaccines. Moreover, he added that the United States dollar lost momentum as risk assets bounced back.
As several multi-billion-dollar deals, Wall Street shares recovered. Thus, they lifted confidence. The recovered shares included Nvidia’s $40 billion purchase of chip designer Arm.
Highly anticipated minutes from the Australian central bank’s September policy meeting gave no hint that record low interests rate will reduce further.