The Australian dollar has risen above $0.7050 early on Monday on renewed hopes of a U.S. coronavirus aid deal before the Nov.
3 presidential election and a major Australian bank pushing back its RBA rate cut call from the Oct.
6 meeting to November nL1N2GO05FnL4N2GP04T, but the rally should be viewed as a selling opportunity.
The likelihood of a compromise between U.S.
Democrats and the White House remains uncertain, as the move by President Trump and Senate Republicans to rush a vote to appoint a conservative judge to replace the late Supreme Court Justice Ruth Bader Ginsberg has raised the political temperature in Washington D.C. nL1N2GN08N.
Even if there is a deal, uncertainty over who will win the November election and the risk of a contested result could keep markets on edge nL2N2GM1W1.
The AUD shouldn't get too big a boost from expectations of a one-month delay to an RBA move to ease the cash rate to 0.10% from 0.25%. The AUD/USD fell to the 100-day moving average (DMA) at 0.7006 on Friday and its failure to break lower has encouraged some short-covering.
The 100 DMA ascends to 0.7012 today and a break below will put the 200 DMA at 0.6775 in focus.
Only a break above 0.7100 would ease downward pressure on the AUD/USD.
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