AUD/USD shoots about 0.6300 while the feeling of the market becomes optimistic

• The AUD/USD rises about 0.6300 as the market feeling becomes favorable for risk -sensitive assets.
• The appetite for the risk of investors improves the assumption that the scope of the commercial war will be limited between the US and China.
• The commercial war between the US and China and the moderate expectations of the RBA would limit the bullish potential of the Australian dollar.

The aud/USD torque rises close to the key level of 0.6300 in the European session on Wednesday. The Australian pair is strengthened as the appetite for the risk of investors has improved in the midst of expectations that the commercial war will not be global and will be limited between the United States (USA) and China.

S&P 500 futures are slightly downward in European negotiation hours, but have recovered their losses significantly. The US dollar index (DXY), which follows the value of the dollar against six main currencies, falls sharply about 107.50, the lowest level in more than a week.

Market participants anticipate a lethal commercial war between the US and China, since the latter has retalled with 15% tariffs on coal and LNG and 10% for crude oil, agricultural equipment and some cars against the decision of the president of the USA, Donald Trump, to impose 10% tariffs on them.

Although a stable market environment has offered some relief to the Australian dollar (Aud), investors expect relief to be in the short term, since Australia would be the victim of the commercial war between the US and China, being a partner Commercial leader of China.

Apart from that, the firm expectations of the market that the Bank of the Australian Reserve (RBA) will pivot towards the normalization of the policy from the February 18 policy meeting would also weigh on the Australian dollar.

In Wednesday’s session, investors will focus on the change of employment of US ADP and on the data managers index (PMI) of ISM Services for January.