- AUD / USD is rising sharply ahead of the American session.
- S&P 500 futures are up more than 3% ahead of the opening bell.
- Pfizer says its coronavirus vaccine is 90% effective.
The pair AUD/USD it rose sharply as risk flows began to dominate financial markets after Pfizer announced that its experimental coronavirus vaccine is “more than 90% effective.” At time of writing, the pair, which touched its highest level since early September at 0.7330 earlier in the day, is trading at 0.7318, gaining 0.8% on the day.
Coronavirus Vaccine Optimism Raises Market Morale
Commenting on the market reaction to Pfizer’s announcement, “the news of the COVID-19 vaccine adds to the positive risk tone in stocks and underpins high beta currencies against the US dollar,” Kenneth Broux told Reuters, Forex strategist at Societe Generale. “Any positive news about a vaccine is good news for the global economy and offers a recovery / normalization outlook for growth in 2021.”
Reflecting the positive shift in market sentiment, S&P 500 futures hit a new high and was last seen gaining 3.7% on the day at 3,630. Additionally, the DAX 30 indices in Germany and the FTSE 100 in the UK are up 5.5% and 5%, respectively.
On the other hand, the US dollar index remains relatively quiet near 92.30. However, a rally in US stocks in the second half of the day could put the dollar under renewed downward pressure.
No macroeconomic data will be released on the US Economic Record for the remainder of the day. In the early trading hours of the Asian session on Tuesday, new catalysts will be sought in the National Bank of Australia’s business confidence index.
Credits: Forex Street
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