- AUD/USD weighed down dovish RBA minutes & Kent’s comments
- US dollar stays strong as US stimulus hopes fade.
- Sept low 0.7006 in focus, even though US futures are pushing higher.
AUD/USD extends losses into a 5th straight session targeting the September low of 0.7006. The pair currently trades near 0.7030.
Bets for a November rate cut and or bond-buying expansion grew after the Reserve Bank of Australia’s (RBA) Deputy Governor Dr. Chris Kent and the minutes from the October meeting minutes indicated that more easing is on its way.
Adding pressure, the US dollar holds overnight gains as optimism surrounding the US fiscal stimulus deal before the election fade, even though there has been a narrowing of differences between the House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin.
Weaker than forecast Chinese economic expansion is also a cause for concern for the AUD buyers. The major is vulnerable to further downside risks heading into Tuesday’s US stimulus deadline. The advance in S&P 500 futures does little to help the Aussie amid jittery market sentiment.
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