The rates continue within the uptrend in favor of the AUD. As an indicator of risk and Chinese economic health, the Australian dollar received strong support due to the recovery of production in China. Economic reports in Australia were also on par with the rest of the countries. The value of the Australian dollar has already reached its highest level in 11 weeks, but then declined due to the conflict between China and the US. The rates also decreased slightly due to data on the recovery of the real estate market in the United States, where, despite the coronavirus, sales slightly increased against forecasts.
However, the Australian dollar still looks stronger and receives support as a risk asset, thanks to optimism and the race to create a coronavirus vaccine. This is encouraging for investors in their estimates of the likelihood of a new wave of the pandemic, with a return to the most stringent quarantine measures.
Despite the high probability of a confrontation between China and the US, we believe that the peak has not yet been reached. The Australian dollar will receive support on Monday, with the publication of reports on business activity in China. In the middle of next week, it will be able to strengthen following the results of the RBA meeting, where the rate is likely to remain unchanged. At the same time, it should also be noted that investors are most likely to react to positive signals that allow them to return to risky assets, while the reaction to a number of negative signals, such as the exchange of threats between China and the US, is weak. Therefore, we believe that In the near future, the deals to BUY will remain relevant. Most technical analysis tools also point to the deals on the trend.
