AUD/USD: ready to rise?
AUD/USD has made significant advances since the beginning of the month. November started at the depths of 0.70 for the Australian dollar. Eventually, the pair rose above 0.73. After a drop to 0.72, AUD/USD corrected upwards and now trades above the same support of 0.73. Is there a potential for a further rise?
Technically, the fact that AUD/USD has reached as far as it did is already an achievement. 0.73 is the range of highs of January 2019. The peculiarity of the situation is that before the virus, AUD/USD was following a clear downtrend. Now, in contrast, even while we are still in the virus “era”, there is a clear uptrend since February. So may it rise further? Yes, it may, but it all depends on the fundamentals – as usual.
There are fresh virus outbreaks in South Australia. Nevertheless, the Reserve Bank of Australia shared some upbeat news recently. Governor Lowe says the economy is recovering, and the relationship between Australia and China is now significantly better than a while ago. Basically, the Australian economy now is in the crossroads where the virus with the outbreak in the south of the country is one way and the trade ties with China are another way. If none goes in the wrong direction, the AUD may well rise above its current levels - at least to the ranges of 0.74.
