See also
06.11.2024 01:46 PM
Today, the AUD/USD pair dropped to a multi-month low amid a rally in the US dollar triggered by Trump's victory.
The sharp intraday decline of over 130 points was driven by strong demand for the US dollar. The USD index surged to a four-month high after exit polls from the US presidential election indicated that Republican candidate Donald Trump was leading the race. Additionally, Republicans are expected to secure a majority in the House of Representatives.
In addition to these factors, Trump's presidency raises concerns about the introduction of new tariffs and a potential trade war with China, further pressuring the Australian dollar. Concerns about deficit spending and expectations of less aggressive Federal Reserve rate cuts are driving US Treasury yields higher. This has strengthened the US dollar and added further pressure on the AUD/USD pair.
However, the risk-on sentiment, as evidenced by the sharp rise in US stock futures, has led to some profit-taking on the US dollar. Furthermore, the hawkish stance of the Reserve Bank of Australia (RBA) and signs that China's large-scale stimulus measures are boosting business activity are limiting losses for the Australian dollar, prompting intraday short-covering in the AUD/USD pair.
Still, there is no certainty that current spot prices can build momentum or that the attempted recovery will be seen as more than a selling opportunity, given the prevailing bullish sentiment for the US dollar. Therefore, it would be prudent to wait for strong follow-through buying before confirming that the AUD/USD pair has formed a short-term bottom. This cautious outlook is supported by daily chart oscillators, which remain in negative territory, reinforcing the bearish forecast for now.
Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.
If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.
Why does your IP address show your location as the USA?
Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.
We are sorry for any inconvenience caused by this message.
