- AUD / USD gains over a hundred pips, on the best day since late August.
- The US dollar plummets amid appetite for risk backed by hopes for a clear outcome in the US elections.
The AUD is among the best performers on Tuesday driven by the rally in equity markets. The expectation about the outcome of the US presidential election contributes to some optimism among traders. The AUD/USD it rose even higher and reached 0.7174, the highest level since October 14.
AUD rises on optimism, despite moderate RBA change
Since Monday’s close, the AUD / USD has risen more than a hundred pips. The Australian dollar outperforms even after the Reserve Bank of Australia (RBA) lowered the key interest rate to 0.1% and expanded its QE program. The central bank mentioned that if more stimulus is needed, QE will be the instrument.
The AUD / NZD cross is having the best day in a month and is approaching 1.0700, contributing to the positive momentum from the Aussie. The key factor is the appetite for risk. On Wall Street, the Dow Jones is up 2.15% and the Nasdaq 1.85% on Election Day.
Market participants are optimistic that the results will be known in a short period of time, without retelling or legal battles. Additionally, the latest round of US economic data pointed to an acceleration in manufacturing activity, which helped market sentiment and weakened demand for the dollar.
Credits: Forex Street
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