AUD / USD returns above 0.7100 and turns positive on the day

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The australian dollar is on track for its second positive day in a row after opening the day on a weak base. The pair bounced from 0.7085 today and managed to reverse previous losses by returning to levels above 0.7100.

Australian Dollar Recovers as Equity Markets Turn Positive

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The Australian dollar is finally pushing higher in Wednesday’s US trading session driven by a moderate improvement in market sentiment after US Home Secretary Nancy Pelosi boosted market sentiment by urging reach an agreement on the US coronavirus aid package.

Pelosi’s comments have spurred a moderate recovery in equity markets, with Wall Street in the green after a negative open. Trump had dashed hopes for stimulus earlier today, accusing Democrats on Twitter of being unwilling to make an acceptable compromise. Trump’s comments triggered strong risk-off sentiment, which propelled the USD against riskier currencies.

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However, attempts to raise the Australian dollar remain limited by the RBA’s monetary policy stance, especially after the Bank acknowledged earlier this week that further monetary tightening was on the table at its last meeting, that paved the way for an interest rate cut in November.

Credits: Forex Street

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