- AUD weak along with US equities.
- The US dollar attracts bids as risk mood sours.
- Pandemic numbers worry everyone hindering sentiment outlook.
AUD/USD fell below 0.7018, and it faces the prospect of further declines; the pro-risk assets are less in favour as COVID-19 cases are increasing, and the US economic stimulus stalemate continues.
The Republicans and Democrats are still at loggerheads over the size and details of the fiscal stimulus package. The US economy reeling under the impact of the pandemic is in dire need of a stimulus – an opinion even shared by the Fed members.
Fed Governor Lael Brainard said that the dillydallying regarding the passage of the bill is the most significant current risk ahead for the US economy.
Economists and the market participants are sensing that the current growth revival might be derailed and a precarious situation will arise if the economy doesn’t receive a booster shot now.
US Election Countdown
The US presidential elections are just five days ahead with the latest poll from BBC News shows Biden enjoying a nine-point lead over Trump, up from the seven-point gap in recent weeks. A last-minute surprise shouldn’t be ruled out; the election jitters are weighing over the market sentiments.