AUD / USD Analysis

AUD / USD Analysis

-AUD / USD witnessed a modest intraday drop near YTD superiors. The jump of the USD from the two-year low created a downward pressure. The AUD / USD pair dropped about 50 pips from the daily peak and was seen in the 0.7135-30 zone below the daily trading range. The pair was not able to take advantage of its early rise to the 0.7175 zone. Instead, the dollar started to pull over the YTD with a moderate recovery from the two-year lows. The dollar found some support behind expectations that an outcome related to the US fiscal stimulus package was approaching. However, concerns that the economic recovery in the US may come to a halt after an increase in coronavirus cases may hinder the dollar recovery. Meanwhile, optimism for a potential vaccine for COVID-19 continued to support the optimistic market atmosphere. This provided some support for the risky Australian dollar and has helped limit a significant shift for the AUD / USD pair for now.