Welcome to Extreme Investor Network, where we provide unique insights and expert analysis on all things related to the stock market, trading, and Wall Street. Today, we are focusing on the impact of the US election on the AUD/USD pair and the Australian dollar in general.
RBA Assistant Governor Brad Jones is set to discuss the potential impact of the US election on the Australian economy. Recent inflation data has supported a more dovish RBA rate path, with the Monthly CPI Indicator dropping from 2.7% in August to 2.1% in September. The RBA had previously downplayed a rate cut in December, but Trump’s victory in the US election could change the narrative. Punitive tariffs on China could weaken demand from China, affecting Aussie exports.
AMP Head of Investment Strategy and Chief Economist Shane Oliver has provided expert views on the RBA interest rate decision, suggesting that a rate cut in December is possible. Additionally, stimulus measures from China could play a significant role in impacting the demand for the Australian dollar. Markets are expecting a substantial stimulus package from Beijing, which could boost demand for the Aussie dollar.
As traders monitor the US session, Michigan Consumer Sentiment trends will be a crucial factor to consider. A higher-than-expected Index rise may reduce bets on a December Fed rate cut, potentially pushing the AUD/USD lower. Conversely, if the Index falls unexpectedly, it could soften US dollar demand and drive the AUD/USD higher.
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