Australian Dollar falls ahead of US election results, Georgia exit polls tilt toward Trump

The Australian Dollar depreciates as traders adopt caution ahead of the results of the US presidential election.

The Aussie Dollar could regain momentum as RBA Governor Michele Bullock reaffirmed a hawkish stance on Tuesday.

Georgia exit polls indicate that Trump holds a 10% lead over Harris, estimated with less than 1% of votes counted.

The Australian Dollar (AUD) retraces its recent gains against the US Dollar (USD) on Wednesday as market anticipation builds ahead of the US presidential election outcome. Traders are also gearing up for the US Federal Reserve’s (Fed) policy announcement on Thursday.

The Aussie Dollar strengthened after the Reserve Bank of Australia (RBA) decided to hold the Official Cash Rate (OCR) steady at 4.35% on Tuesday, marking its eighth consecutive pause. RBA Governor Michele Bullock reiterated a hawkish stance, emphasizing the need for restrictive monetary policy given persistent inflation risks and a strong labor market.

Additionally, Australia’s latest Purchasing Managers Index (PMI) data indicated a positive shift in private sector activity in October. Growth in the services sector helped offset a continued decline in manufacturing.