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  • AUD/USD’s rebound from 0.7050 extends to 0.7200.
  • The pair turns positive ion that day as market sentiment improves. 
  • Aussie’s near-term outlook is mixed – UOB.

The Australian dollar is going through a strong recovery after having dropped to session lows at 0.7050 during the Asian session on Wednesday. The pair has regained lost ground, favoured by a brighter market sentiment, to return towards 0.7200.

Australian dollar appreciates with the USD on retreat

The Aussie has regained lost ground, turning positive on daily charts with equity markets posting sharp advances after a negative opening in Europe. Investors have welcomed the blue shift in the US vote count, with the Democrat candidate, Joe Biden, taking the lead in key states Wisconsin, Michigan and Nevada.

The US dollar, which surged during the Asian session as the Democrat landslide victory anticipated by the polls did not take place, has been losing ground as risk appetite returned to the markets. The tight race between the two candidates, however, is keeping the US dollar afloat on the chances that the Republicans take control of the Senate and block the fiscal stimulus plan.

AUD/USD outlook remains mixed – UOB

From a technical point of view, the FX Strategy team at OUB sees the pair mixed on the near-term: AUD popped to a high of 0.7223 earlier this morning but has since retreated. The volatile price actions have resulted in a mixed outlook. From here, AUD could trade in a choppy manner but is likely to stay between the two major levels of 0.6990 and 0.7300.”