- AUD/USD has added more than 10 pips amid mild risk-on in the equities.
- Equities are flashing green despite coronavirus scare.
The buying interest around the Australian dollar looks to have strengthened somewhat over the last few minutes, possibly tracking the uptick in the US equity index futures.
Risk sentiment eyed
The futures on the S&P 500 are currently adding over 0.20% and the major Asian indices except Japan’s Nikkei are flashing green. For instance, South Korea’s Kospi and China’s Shanghai Composite are up 0.23% and 1%, respectively.
The equities are putting on a good show despite the uptick in the number of coronavirus cases in China and across the globe. A total of 105 people were killed by the coronavirus in mainland China on Sunday, the Chinese National Health Commission (NHC) said.
Further, a total of 2,048 cases were confirmed in mainland China on Sunday. The global tally is also rising with more than 71,319 cases of the virus recorded worldwide.
The Aussie dollar is likely benefitting from the mild risk-on in the equities. At press time, AUD/USD is trading at 0.6725, having hit a high of 0.6730 a few minutes ago. The pair found bids around 0.6714 early Monday.
The currency could challenge resistance at 0.6750 (Feb. 12 high) in Europe if the risk sentiment continues to remain strong.
It’s worth noting that the hedge funds have recently turned bullish on the AUD on hopes that the resilient domestic economy would allow the Reserve Bank of Australia to keep rates on hold in the near term.