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Flags Risk Appetite As A Driver Of The Bid In AUD/USD

RBA

The RBA flagged the broader risk backdrop as the driving force behind the bid in the AUD/USD, which is well known and documented (and was flagged in our preview: "Financial conditions remain accommodative around the world, with bond yields near historically low levels. The positive news on vaccines has boosted equity markets, lowered risk premiums and supported further increases in some commodity prices. The improvement in risk sentiment has also been associated with a depreciation of the US dollar and an appreciation of the Australian dollar."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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