Investors are still refraining from active trading as they are anticipating the results of the presidential election. Biden leads the polls but uncertainty prevails amid the high probability that the results will be disputed. What is more, there may be delays in the announcement of results since in many states the vote count may be postponed to the next day due to a large number of votes by mail.
Thanks to the status of a safe-haven currency, the US dollar tried to break above the monthly high at 94.20 but failed. At the time of making this video, the US dollar index, which measures the strength of the greenback against a basket of six major currencies, went below the psychological level of 94.00. Forex analysts think that if Biden wins, it may trigger a massive sell-off of the US dollar. However, if Trump is re-elected, the greenback will firmly consolidate near the current values.
Wall Street investors are more optimistic about the results of the vote. Yet, the dollar/yen pair did gain ground amid a surge in the stock market. The pair was unable to break above the resistance level at 104.83 and rolled back. It is likely to stay flat near the current levels ahead of the election results. However, it may develop a rally if it rises above the level of 104.83. If so, it may well lift up to the target level at 105.42. To resume the downward movement, the pair needs to tumble to 104.20 and then to the bearish target at 103.73.
The Australian dollar came under the spotlight during today’s Asian session. Market participants factored in the slight retreat of the US dollar. As a result, the AUD/USD pair gained momentum despite the Reserve Bank’s decision to slash the interest rate by 15 basis points.
The policy board of the Reserve Bank of Australia announced its intention to purchase A$100 billion government bonds of maturities of around 5 to 10 years over the next six months. As a result, the target yield for three-year bonds decreased from 0.25% to 0.1%.
However, investors opened long deals on the Aussie after the comments of RBA governor Philip Lowe. He said that “the bank is not out of firepower, but the negative rates are still extraordinarily unlikely.”
FX Analytics – https://www.instaforex.com/forex_analytics
Forex Calendar – https://www.instaforex.com/forex_calendar
Forex TV from InstaForex – https://www.instaforex.com/instaforex_tv
Forex charts – https://www.instaforex.com/charts
Instant account opening – https://www.instaforex.com/fast_open_live_account
Forex Trading Contests – https://www.instaforex.com/forex_contests
List of official InstaForex blogs:
Tweets by instaforex
#forex_news # asian_session #instaforex_tv