Australian dollar inches up despite weak Chinese growth data

The Australian dollar inched higher on Monday, amid the continued optimism about the US second fiscal stimulus package to ease the coronavirus impact.

 

This came despite the release of the actual reading of China GDP, which came in at 4.9% during the third quarter, below expectations of 5.5%, vs. 3.2% during the second quarter.

 

The Donald Trump administration proposed a $1.8 trillion fiscal stimulus package to mitigate the coronavirus impact.

 

The Trump administration will try to reach compromise with the US congressional leaders in order to pave the way for an agreement on the package ahead of the November election.

 

As of 17:57 GMT, AUD/USD rose 0.1% to 0.7089, after hitting a high of 0.7116, and a low of 0.7072.


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Posted By laraparker : 20 October, 2020
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The US dollar fell against a basket of major currencies Monday, on profit-taking from a 2-month high of 94.74 points hit on Friday, in addition to improved risk appetite amid hopes for a new stimulus package in the US.   The dollar index fell 0.5% to 94.15 points, after opening at 94.58, and hit an intraday-high of 94.64.   The index rose 0.3% on Friday, and hit its 2-month high of 94.74 points, on increased by buying momentum against a basket of major currencies.   The US dollar gained 1.6% during the past week, posting its third weekly gain in a month and the largest since March.   The biggest weekly gain in six months came after the greenback shined as the best alternative investment, due to concerns about the global economy after several governments tightened their lockdown restrictions to curb the spread of the coronavirus.   Following these developments, most global stock markets were hit by a broad sell-off move, which has sparked concerns over a liquidity crunch.   Hopes for a new fiscal stimulus in the US were renewed, after House Speaker Nancy Pelosi said on Sunday that a solution can be reached with the White House on another coronavirus stimulus plan, adding that she believes they can come to an agreement.

European stocks rose on Tuesday, to extend gains for the second straight day, thanks to improved risk appetite after positive news about candidate Covid-19 vaccine.   The Stoxx Europe 600 index rose 0.8% as of 11:45 GMT, after it closed higher by 4% yesterday, in the biggest daily gain since May 18, and hit the highest level since March at 385.81 points.   This biggest daily gain in nearly 6 months came thanks to strong market sentiment after the US election results and positive news about Covid-19 vaccine.   The pan European index opened higher today, to extend gains for the second straight day, with most of the major European markets and sectors seeing green today.   The banking sector saw the largest gains in Europe today, rising 3% on hopes about the global economy to quickly recover from the coronavirus impact.   The American pharmaceutical giant Pfizer and the German biotech firm BioNTech stated on Monday that their Covid-19 vaccine was more than 90% effective, according to recent data from the final phase of the clinical trials.   Dr. Anthony Futci, director of the National Institute for Allergy and Infectious Diseases, said that a 60% effective vaccine would be acceptable to prevent the coronavirus.   S&P 500 futures fell over 0.75%, after it closed higher by 1.2% yesterday, and hit a new record high of 3,645.99 points.   Back to Europe, the Euro Stoxx 50 index rose 0.9%, France's CAC 40 rose 1%, Germany's DAX added 0.2%, and the UK's FTSE 100 rose 1.2%.

The US dollar rose against its peers on Monday, on safe-haven demand amid growing concerns about the coronavirus crisis.   The record spike of infections in several countries, especially in Europe, has led to re-imposing partial lockdowns and quarantine restrictions.   The US reported a record jump in coronavirus cases by more than 80,000 cases in a single day.   While the November 3 US presidential election is approaching, the race has intensified between the Republican candidate Donald Trump and his Democratic rival Joe Biden.   This came amid the lack of an agreement between the US Congress and the White House on the second Covid-19 aid package.   The dollar index rose against a basket of currencies by 0.3% to 93.02 points as of 19:20 GMT, after hitting a high of 93.1 and a low of 92.7.


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