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  • AUD/USD gains more than a hundred pips, on the best day since late August.
  • US dollar tumbles amid risk appetite supported on hopes about a clear result in US elections.

The Aussie is among the top performers on Tuesday boosted by the rally in stock markets. The expectation about the outcome of the US presidential election contributes to some optimist among traders. The AUD/USD rose further and reached at 0.7174, the highest level since October 14.

AUD up on optimism, despite dovish RBA

From Monday’s close, AUD/USD has risen by more than a hundred pips. The aussie is outperforming 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 of the Aussie. The key factor is risk appetite. In Wall Street, the Dow Jones rises by 2.15% and the Nasdaq by 1.85% on Election Day.

Market participants are showing optimism that the results will be known in a short period of time, with no recounts or legal battles. Also, the latest round of US economic data pointed to an acceleration in manufacturing activity, helping market sentiment and weakening the demand for the dollar.

Technical levels