The Australian Dollar traded in a wide range over the past week as fluctuating market sentiment stoked volatility in the risk-sensitive currency.
The Aussie dollar initially opened the week on solid footing, rallying in response to the news that Joe Biden had been declared the winner of the US presidential election by most major news organisations.
This upbeat mood was then extended after US pharmaceutical giant Pfizer announced that its experimental coronavirus vaccine has shown 90% effectiveness and that it would be applying for emergency approval by the end of the month.
However, the Australian Dollar was unable to sustain the spike that followed the announcement, with a disappointing Chinese CPI release swiftly dethroning the Aussie dollar.
AUD exchange rates then struggled to find any meaningful gains through the rest of the week as renewed coronavirus jitters and Trump’s refusal to concede the US presidential election further undermined market risk appetite.