- AUD / USD stages a steady rally after falling to 0.7050.
- The US dollar index continues to move away from monthly highs.
- Eyes on US election results, mid-level data releases from the United States.
Widespread USD strength in the early trading hours of the Asian session pushed AUD / USD down to a daily low of 0.7050. However, with the greenback struggling to maintain its strength, the pair reversed direction and proceeded with a steady rebound. At the time of writing, the AUD / USD was down 0.42% on a daily basis to 0.7130.
U.S. Election Headlines Determine USD Valuation
With the first results of the US presidential election showing stronger-than-expected support for US President Donald Trump, the risk rally, sparked by hopes of a blue wave, lost momentum and kicked off. inch to the USD.
After losing more than 0.7% on Tuesday, the US dollar index (DXY) jumped to a new monthly high of 94.30 to reflect the overall strength of the US dollar. However, former Vice President Joe Biden has started to gain traction in some key states and allowed risk flows to return to the markets. For now, the DXY is still up 0.22% on the day at 93.55.
US Elections: The second best thing to a blue wave is a Trump victory.
Meanwhile, S&P 500 futures are up 0.75% on the day, confirming the positive change in market sentiment. If the main Wall Street indexes start the day decisively higher, the USD could come under further selling pressure and help AUD / USD rise.
Later in the session, ADP Employment Change, Trade Balance, Markit Services PMI and ISM Services PMI data will be presented in the US Economic Register.