The Australian Dollar US Dollar (AUD/USD) exchange is advancing on Monday, paring losses from Friday.
Upbeat news on covid vaccinations and coronavirus treatments has sent riskier assets such as stocks and currencies higher. Optimism that US – Sino tensions could also be thawing is also supporting the risk sensitive Australian Dollar.
The US Dollar is clawing back earlier losses even after the Chicago Fed PMI printed worse than expected. The data raises concerns that the US economic rebound has happened, and growth will now be sideways.
With no economic data due to be released risk sentiment is likely to drive trading across the US session.