Some time ago, the AUD/USD currency pair was trading in the range of 0.7270. It is done in the opening between the range of 0.7263 and 0.7270 so far after the bullish close on Friday. This data has shown an increase in the currency.
Previously, AUD/USD was sold at a narrow price range of 0.7222-42 and could not penetrate resistance. That's a risk along the way, especially on Friday. However, the Aussie cannot keep pace with the pace of equity held by the US. The situation relates to covid’s cases.
As we know that until now the United States is still struggling with the coronavirus. Many new positive cases are reported every day. Then, there is also the threat of a second wave of viruses that may occur. This situation has led the USD to decline.
Covid-19 cases in America
Daily cases in New York are reported to have exceeded the figure of 5,000 sufferers. It was the highest since April. In addition, the states of California, Oregon, and Washington have urged people who come to quarantine themselves. It is important to suppress the rate of cases.
Elsewhere, Illinois reported a record number of daily infections and hospitalizations. The moment came a day after Chicago announced a stay-at-home warning. It means some states have already taken the decision to go on lockdown for a second time.
Meanwhile, if the US dollar does not take off from the current demand zone, the Aussie may find some additional support in the market. The support is on vaccine sentiment buying commodity markets. For information, expectations about vaccines are growing and many are optimistic.
The vaccine was issued by several companies. According to the report, the effectiveness rate even reaches 90%. The good news is no meaningful security issues were found. However, the discovery still has to undergo a series of clinical trials before it can be mass-produced.
Australia and China Commitments
Supporting AUD vs. US and New Zealand dollar currencies is also carried out by various parties. One of them can be seen through comments from the Deputy Foreign Minister and The Australian Trade Minister during Friday's Asian session; Christopher Langman. He stated something.
Speaking at the Caixin summit in Beijing, Langman said the disruptive trade conditions between Australia and China would be resolved soon. Meanwhile, Beijing will resolve the entire "technical" issues as quickly as possible to create a better trade situation for both countries.
However, the mood in general can deteriorate the mood of the market. It is mainly for commodity complexes due to new restriction decisions in the US. It can weigh on sentiment in the commodity field of the crude oil market, although an effective vaccine has emerged.
To this day, Reserve Bank of Australia Governor Phillip Lowe will talk about "Covid, Our Changing Economy, and Monetary Policy." More precisely is at the moment of the ANNUAL CEDA Dinner. It is hoped that the latest solution will emerge so that the world economic situation becomes stable.
Gold Prices are higher
Gold prices are reportedly rising as the coronavirus infection cases globally increasing re-ignite concerns about economic losses from pandemics. On the other hand, skepticism over the potential reach of the COVID-19 vaccine is increasing safe-haven metals. Spot gold rose 0.5% to $1,884.76 an ounce.
But gold bullion is still at its weekly loss level and is the worst since late September. So far the commodity is down 3.4%, mainly due to initial euphoria over an effective vaccine from Pfizer published. U.S. gold futures also closed up 0.7% to $1,886.20.
Many people have been informed about the COVID-19 vaccine that is raging in the U.S. and the uncertainty surrounding it. There is also the potential for further economic damage in the coming months. All of that supports the rise of the gold market.
