AUD and EUR Rise With The Start of Transition Process

Riskier currencies like the Australian dollar surged on Tuesday (November 24th) after US President Donald Trump authorized the transfer of power to President-elect Joe Biden.

The New Zealand dollar was one of the biggest gainers, up by 0.9%, rising to its highest level in two years at $ 0.6985, after the government requested advice from the central bank on how to help stabilize real estate prices, prompting some investors to liquidate bets on more monetary easing.

Trump allowed the General Services Administration to proceed with the Biden transition process, despite his pledge to continue efforts to challenge the election results.

Biden’s Democratic allies said that former Federal Reserve Chair Janet Yellen is expected to be nominated for the position of Treasury Secretary, encouraging investors as she calls for increased government spending to pull the economy out of recession due to the Coronavirus.

Against a basket of currencies, the dollar fell 0.12% to 92.396, hovering slightly from the three-month high of 92.013, which it hit on Monday. The Australian dollar rose 0.4% to $ 0.7313, while the euro increased 0.1% to $ 1.1852.

The dollar also suffered after AstraZeneca boosted investors’ appetite for risk by saying that its Covid-19 vaccine could have effectiveness up to 90% and that it was preparing to provide data to authorities around the world that would allow them to obtain conditional or early approval.