AUD – The Australian dollar rallied to a one-week high on Tuesday, supported by the risk-on tone throughout the day’s sessions and an overall positive tone from the RBA at their December policy meeting.
Scotiabank noted that “The Australian dollar is leading gains among the major currencies on the session following comments from the RBA indicating that it did not expect the Omicron variant to derail the recovery… That seems to be developing into a broader working theory for markets as the variant appears – at the moment – to be more infectious but less than the Delta variant.”
CAD – The Canadian dollar strengthened to a two-week high against its US counterpart on Tuesday as concern about the economic threat of the Omicron coronavirus variant receded, and data showed Canada posted its biggest trade surplus in nearly a decade.
Chief analyst at Forexlive, Adam Button, argues that “the market is taking an optimistic view of the severity of the Omicron variant and the Canadian dollar is benefiting from that… There are signs that central banks aren’t overly concerned about Omicron, and that may translate into a hawkish Bank of Canada.”
Scotiabank noted that “The Australian dollar is leading gains among the major currencies on the session following comments from the RBA indicating that it did not expect the Omicron variant to derail the recovery… That seems to be developing into a broader working theory for markets as the variant appears – at the moment – to be more infectious but less than the Delta variant.”
CAD – The Canadian dollar strengthened to a two-week high against its US counterpart on Tuesday as concern about the economic threat of the Omicron coronavirus variant receded, and data showed Canada posted its biggest trade surplus in nearly a decade.
Chief analyst at Forexlive, Adam Button, argues that “the market is taking an optimistic view of the severity of the Omicron variant and the Canadian dollar is benefiting from that… There are signs that central banks aren’t overly concerned about Omicron, and that may translate into a hawkish Bank of Canada.”