Listen to the latest market mood for the AUDUSD pair.

Weak USD, Strong AUD

Asian equity markets traded higher overnight after expectations of more Fed stimulus improved risk tone. Fed’s Harker said that more fiscal stimulus is needed to soften the blow for states and local government. Furthermore, there was positive vaccine news from Moderna. Moderna’s vaccine trial produced a strong immune response for all 45 patients in an early-stage human trial and the findings show the vaccine could provide protection against the coronavirus. The positive risk tone has supported the high beta AUD currency and weakened the USD which has been acting as a safe have currency alongside the JPY recently.

Therefore, expect AUDUSD buyers from pullbacks as long as this risk tone remains.

Day trade outlook – We expect this trade to play out before the end of the US session.

Trade Risks:

• Any reversal in risk tone will invalidate the outlook.