AUSTRALIAN DOLLAR, ASX 200 – Speaking Factors:Australian Dollar, ASX 200 have diverged amid enhancing market sentimentWorth strik
AUSTRALIAN DOLLAR, ASX 200 – Speaking Factors:
- Australian Dollar, ASX 200 have diverged amid enhancing market sentiment
- Worth strikes might mark confidence in decrease US-China commerce struggle, Brexit dangers
- Technical positioning appears to help the case for extra of the identical forward
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The Australian Greenback and its dwelling nation’s benchmark ASX 200 inventory index are diverging.
The 2 initially moved in tandem as markets turned more optimistic at the end of the third quarter, replicateing hopes for US-China commerce struggle de-escalation and easing worries a few no-deal Brexit. That this buoyed Australian shares alongside different risk-geared property appears straight-forward. The enhance to AUD/USD appears to have come much less from the Aussie’s personal enchantment than ebbing haven demand for the Greenback.
The narrative appears to have modified initially of November. The ASX 200 has continued marching greater alongside ebbing 2020 Fed fee reduce expectations, chatting with additional enchancment in traders’ evaluation of the macro backdrop. In the meantime, AUD/USD has turned downward. This would possibly reinforce the constructive narrative, implying USD’s yield advantage has become attractive anew in calmer waters.
Chart created with TradingView
Wanting forward, extra of the identical appears…