AUD/USD hits one-month high above 0.70
- AUD/USD rises above 0.70 as US stock futures cheer coronavirus vaccine news.
- Risk-on is overshadowing the Sino-US tensions and weak Aussie data.
- Australia's consumer confidence dropped in July on the resurgence of the virus.
The Aussie dollar and other high beta currencies are drawing bids on Tuesday with the US stock futures flashing green on the back of potential coronavirus vaccine showing positive results in a safety trial.
AUD/USD is trading at 0.7014 at press time, the highest level since June 10, having opened the day at 0.6974. The pair is reporting a 0.52% gain on the day. Meanwhile, the futures on the S&P 500 are up over 0.80%.
Futures jumped after the news hit the wires that Moderna Inc.’s Covid-19 vaccine produced antibodies to the coronavirus in all patients tested in an initial safety trial. It's the first vaccine tested in the U.S. to publish results from its trials in a peer-reviewed journal, according to U.S. News.
The risk-on is overshadowing the weak Aussie data released early Wednesday and the Sino-US tensions and keeping the safe-haven US dollar under pressure.
Australia's consumer confidence index published by Westpac fell to -6.1% in July, almost entirely reversing the 6.1% rise seen in June. Confidence looks to have been shaken by the rise in the number of coronavirus cases in Australia.
Meanwhile. President Trump on Tuesday signed a bipartisan bill into law, sanctioning Chinese officials who undermine the rights to free speech and assembly in Hong Kong. As per the latest reports, China has decided to implement retaliatory sanctions on US officials. The AUD and other risk assets may come under pressure if the tension between Washington and Beijing continues to heighten.