- AUD/USD eases from six-week high ahead of the key events.
- US President Donald Trump lags in Arizona and Pennsylvania, Biden has 260+ votes.
- US marks record COVID-19 daily infections with 109,000 new cases on Thursday.
- RBA statement will give details of the rate cut, QE and economic projections.
AUD/USD recedes from the late-September top to 0.7263, down 0.22% on the day, during the early Friday’s trading. The aussie pair surged to the multi-day high the previous day as Democratic candidate Joe Biden gets near to the White House leadership. Also favoring the mood could be the Fed’s cautious comments.
As per the latest updates from the US 2020 elections, Biden leads in Arizona and Pennsylvania while voters in Georgia love President Trump, even with a small difference. News that a special counsel will investigate Trump’s campaign, as well as chatters concerning the delay in US election results until January, offer background music to portray the uncertainty over the American polity. Even so, Biden is close to the 270 required electoral votes and enthuse the markets expecting further stimulus.
Check live updates for the 2020 US elections here.
Not only the stimulus hopes but downbeat comments from the Fed Chair Jerome Powell also weighed on the US dollar index (DXY). The DXY dropped to the fresh low since late-October after Powell marked tail risk to the economy.
It should, however, be noted that the AUD/USD bulls have recently been cautious as RBA’s quarterly monetary policy statement will offer details of indicators that resulted in the latest rate cut and the Quantitative Easing (QE) by the Australian central bank.
Additionally challenging the risk-on mood could be the coronavirus (COVID-19) numbers from the US. The latest tally suggests that there are 109,000 new COVID-19 cases from the US on Thursday. The figures marked the second day in a row with over 100,000 new cases after beating Wednesday’s daily record.
Against this backdrop, S&P 500 Futures drop 0.40% to revisit the sub-3,500 area ahead of the Tokyo open.
Moving on, RBA statement and US election updates will be the key to watch ahead of the US employment numbers for October.
Read: Nonfarm Payrolls Preview: Encouraging data but little action expected
Technical analysis
While October’s top near 0.7245 offers immediate support, 50-day SMA around 0.7180 and a falling trend line from September 01, at 0.7128 now, restrict the short-term downside of the AUD/USD prices.
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