During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
Australian dollar heads south
On Tuesday, the US dollar stabilized because the market's focus shifted to US trade policy. It’s because market participants told that US attacks on Syria would not evolve into a wider conflict in the Middle East.
The US dollar index, indicating the US dollar’s strength against a bunch of six major currencies, was nearly intact having dived 0.4% on Monday.
Against the Japanese yen, the evergreen buck declined a bit because traders are preparing for a meeting between US President Donald Trump and Japanese Prime Minister Shinzo Abe on Tuesday and Wednesday.
Tokyo seeks to avoid clashes in the talks on a bilateral free trade agreement aimed not only at market access, but also at further changes in monetary and monetary policies.
The Australian dollar inched down after the publication of the minutes of the April meeting of the Reserve Bank of Australia. The minutes dropped a hint at increased uncertainty.
The currency pair AUD/USD dived 0.15% being worth 0.7769.
The protocol states that in the current conditions, the participants agreed that it’s more likely that the next step to have the interest rate lifted will be sooner rather than later. It’s the first case in this cycle, when protocols included such an observation.
The commentary around the labor market of inflation seems to be a bit more restrained than in the previous protocols. The protocol added that there still exist free opportunities in the labor market, inadequate employment at high levels, and progress in unemployment and inflation is likely to be only gradual. Inflation will remain low for some time, considering retail competition and slow wage growth.
Additionally, the protocols noted that the strengthening of the Australian dollar will slow inflation as well as the expected acceleration in the economy.
Additionally, it has become known that the growth of China's economy remains stable in the first quarter of 2018 amid strong retail sales.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.