- AUD / USD is posting strong daily gains on Monday.
- RBA’s Lowe says negative rates are extraordinarily unlikely in Australia.
- The risk appetite in the market causes the dollar to lose interest.
After closing the previous week practically unchanged, the pair AUD/USD It gained traction on Monday and advanced to its highest level since Sept. 9 at 0.7326. At time of writing, the pair was up 0.75% on the day at 0.7322.
Risk Appetite Flows Help AUD Start Week on Solid Foundation
Earlier in the day, the Governor of the Reserve Bank of Australia (RBA), Phillip Lowe, said negative rates as a policy option in Australia were still extraordinarily likely. “We would only consider negative rates if all the major banks in the world had negative rates,” Lowe added, and these comments helped the Australian dollar to gain strength.
Furthermore, data from China revealed that industrial production and retail sales expanded at a steady pace in October and provided additional boost to China’s AUD.
In the second half of the day, the positive change observed in market sentiment allowed AUD / USD to maintain its bullish momentum.
Moderna reported Monday that its coronavirus candidate was 94.5% effective and prompted a spike in risk. Major European stock indices closed in positive territory and Wall Street opened higher on Monday, making it difficult for the dollar to find demand as a safe haven. At time of writing, the US Dollar Index was down 0.1% on the day at 92.61.
During Asian business hours on Tuesday, the RBA will publish the minutes of its November meeting, in which the bank lowered its policy rate to 0.15% and announced a QE worth A $ 100 billion.
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