AUD – Australian Dollar
The Aussie dollar ended the week in a narrow range, failing to find any momentum as it valiantly tried to break through the 73 cent mark. Opening at 0.7295 on Friday, markets continue to ride the wave of vaccine news and the surge in coronavirus cases.
Falling early during domestic trade to an intraday low of 0.7266, the Aussie was supported by a stronger than expected retail sales impression as consumer spending rose 1.6% per month in October. This comfortably beat the previous reading where sales fell 1.1% m / m and a sign that the economy is doing better than expected. One of the main reasons for this stronger result was that the state of Victoria was reopening following an easing of lockdown restrictions.
AUD / USD jumped to a high of 0.7324 on North American trade as Pfizer and BioNTech applied for approval of their coronavirus vaccine from the United States Food and Drug Administration (FDA) . Shares surged higher before a record number of coronavirus cases in America pushed the Dow and S&P 500 down.
The Australian dollar opens at 0.7300 ahead of the Flash Manufacturing and Services PMI due out this morning. We expect support levels to hold on moves approaching 0.7250, while any upward push will likely meet resistance at 0.7340.
The US dollar eased 0.11% on Friday as US stocks closed lower. A safe haven currency supply was considered as the number of coronaviruses skyrocketed. Trade for potential vaccine information appears to be compensating for the increasing number of viruses.
President Donald Trump still refuses to concede the US presidential elections as President-elect Joe Biden’s margin of victory has risen to six million votes. A federal judge in Williamsport, Pa., On Saturday dismissed a lawsuit brought by President Donald Trump’s campaign to overturn the likely loss. The delay threatens to hamper the world’s largest economy in its attempt to recover from a weak economic context.
The latest G20 summit was held via video conference this weekend where leaders of the 20 biggest countries gathered to discuss the uncertainty of a global recovery. Given the deep recession that COVID-19 has plunged the world into, talks for a quick economic rebound were firmly on the agenda. The leaders urged that more money be invested in vaccine testing for vaccine development and distribution as a result of large-scale testing now.
Brexit talks had to be halted between the UK and Europe as one of the negotiators tested positive for COVID-19. Chief EU Commissioner Michel Barnier, head of negotiations, tweeted that members had suspended negotiations and remained in isolation for a week under Belgian rules.
GBP / USD was slightly higher (0.21%) at 1.3283 on Friday after the better-than-expected result of retail sales rising 1.2% m / m in October as early Christmas buyers had increased the numbers for the sixth consecutive month.
Today is dominated by several manufacturing and service PMI publications in Europe today as Japan observes a public holiday. A number of central bank minutes are due to be released this week as market direction is on hold pending approval of the COVID-19 vaccine.
AUD / USD: 0.7250 – 0.7340 ▲
GBP / AUD: 1.8000 – 1.8300 ▼
AUD / NZD: 1.0500 – 1.0560 ▼
AUD / EUR: 0.6120 – 0.6180 ▲
AUD / CAD: 0.9500 – 0.9600 ▲