Markets are nervous awaiting a monumental Tuesday, including the US Election, the RBA Meeting, Guy Fawkes and the Melbourne Cup. Australian markets will be focused on the Cup, while global markets will nervously await the outcome of the US elections. The US Dollar eased slightly, in anticipation, allowing the EUR to bounce back towards 1.0900. The GBP regains ground from losses suffered from last week’s Budget, assisted by the USD weakness, to trade 1.2950.
The softer reserve allowed the commodity currencies to consolidate, with the NZD looking to regain 0.6000, while the AUD approaches 0.6600 ahead of the RBA rate decision. The Australian ‘Inflation Gauge’ was higher than expected, jumping to 3 from 2.6, adding pressure on the RBA to hold rates today, as expected. The RBA has executed surprise decisions, under cover of the Melbourne Cup before, so be prepared. The Presidential Election will be tonight so markets remain tense.
