Risk on sends AUD higher

Daily Currency Update

Friday’s overnight session saw the AUD initially break through the 0.7200 handle to touch intraday highs of 0.7243 as sentiment was bolstered by news of Trump’s support of a COVID-19 support plan in the US. With the NZD also rising, the AUD/NZD cross was pushed lower, falling from 1.0875 to 1.0850 through trade.
Sentiment was also helped as markets warmed to the idea of a Biden election win. With the US election expected to be a key driver of markets, and the AUD over the coming months, the prospect of a clear Biden win, and therefore no contested result, has been welcomed by markets.
Monday is shaping up to be a quiet day on the data front, with only New Zealand migration data and a public holiday in the USA. Traders will be looking towards the Tuesday sessions, where we will get an update on the UK labor market as well as CPI data for the Eurozone. These risk events could see some movement in AUD/EUR and AUD/GBP if any surprises present themselves.