- AUD/USD is moving sideways above 0.7100
- The aussie consolidates gains in a risk-off session.
- On Tuesday, all eyes will be on RBA’s speakers.
Australian dollar’s recovery from last week lows at 0.7020 has stalled on Monday below 0,7160. The pair has been moving within previous ranges, supported above above 0.7100.
The Aussie consolidates amid an adverse market sentiment
The AUD/USD has been moving without a clear direction on Monday, consolidating gains in a strongly risk-averse market. The global increase of COVID-19 cases has been the main market driver today, with the investors rushing for safety following reports of record coronavirus infections in the US and France and Spain introducing the state of emergency for the second time.
The US dollar has outperformed its main peers, buoyed by strong demand for safe assets, with equity markets posting significant declines. The USD Index shows a 0.3% daily increase at the time of writing.
On the macroeconomic front, September’s preliminary Australian trade balance has shown a larger than expected surplus although the impact on the Aussie has been muted.
On Tuesday all eyes will be on the speech of the Deputy Governor of the Reserve Bank of Australia, Guy Debelle and the Assistant Governor Michele Bullock. The dovish monetary policy minutes released last week have increased the expectations of a rate cut in November. Any more evidence on that line might increase negative pressure on the Aussie.