AUD/USD: New paradigm ahead of US Presidential election? – JP Morgan

Analysts at JP Morgan offer their outlook on the AUD/USD pair, in light of the global stock markets rally and US Presidential election.

Key quotes

“AUD currently trades broadly with risk markets.

The tug of war between the second wave and global stimulus for stock market directionality will be won by the latter, which should keep AUD sell-offs limited. 

Further out, the coming months will see focus switch from the virus to the US presidential election.

Will find that USD/equity correlations will flip from negative to positive.

May see some unexpected and de-correlated price action going forwards as we flip into a new paradigm.”