Australian Dollar down as Trump's euphoria overshadows RBA hawkishness

AUDUSD News

Australian Dollar down as Trump's euphoria overshadows RBA hawkishness
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The AUD/USD pair plunged 1.25% to 0.6555 on Wednesday after Donald Trump's US presidential election victory sparked enthusiasm for the US Dollar.

AUD/USD falls after Donald Trump wins the US presidential election. Republican victory raises concerns about trade war with China, weighing on AUD. RBA's hawkish stance might limit the AUD losses The AUD/USD pair plunged 1.25% to 0.6555 on Wednesday after Donald Trump's US presidential election victory sparked enthusiasm for the US Dollar. Fears of a trade war with China, fueled by the Republican victory, weighed on the Australian Dollar.

The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets or seeking safe-havens – is also a factor, with risk-on positive for AUD.

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