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Currency Market Analysis

Oct 23, 2020 | Currency Market Analysis

Global Themes

Aussie steady at one-week highs as markets await stimulus deal

• Aussie near one-week highs
• US stimulus to drive sentiment
• Global PMI closely watched

Will they, won't they?

The AUDUSD remained near one-week highs overnight as markets awaited news of the long-awaited US stimulus deal.

Hopes eased in the US on Thursday despite more hopeful commentary from Democratic Speaker Nancy Pelosi, after Republicans, including Senate Leader Mitch McConnell and President Donald Trump, suggested talks were stuck in an impasse.

US shares still ended higher with the Dow Jones up 0.5%.

AUD at recent highs

The AUDUSD ended flat with the pair near one-week highs.

The Aussie was much stronger in Europe recovering from four-month lows versus both the euro and British pound.

PMI in focus

The main economic focus today will be on the global PMI numbers.

These numbers provide the most up-to-date reading from the global economy.

The Australian numbers showed an imporvement in services activity but a weakening in manufacturing.

Japanese results are also due this morning. Later, European and US PMI figures are due.

US stimulus talks remains critical for broader market sentiment.

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