Finally, it's here US Election Day. The markets are quite slow and not volatile just yet, as traders may avoid speculation and risk due to US election. It may also take some time before the winner is announced, so the US Dollar Index Futures remains largely unchanged since Monday (NASDAQ:MNDY) in terms of wave structure. But I still see a potential counter-trend movement here on the Dollar Basket, and there’s a chance for an upward move later this week towards the red trendline resistance of a triangle.
In the overnight session, the RBA’s decision came in as expected; they kept rates unchanged at 4.35%. More importantly, Bullock noted that rates need to stay restrictive for now, with the risk of higher inflation still present. This has kept the Aussie somehow attractive today ideally, headed up to 0.67 for wave B.
If someone wants to go long on the Dollar with potential speculations on a Trump victory, they might want to avoid the Aussie, as there could be more attractive and weaker currencies than the Aussie for this play.
