AUD/USD May Fall Below 0.70 Ahead of Election

WikiFX News (2 Nov.) - The latest polls give Biden a lead over Trump, but uncertainties remain on the cards. Besides, events such as spiking Covid-19 cases and deadlocked stimulus talks will heighten risk aversion and spark AUD selloff.

BBCs new poll shows that Biden leads ahead of Trump by a 9-point margin. But Trump could turn the tide because Republicans are more likely to vote in-person. It may rattle markets if investors believe that the race may be more intense and uncertain than expected.

In addition, another fiscal stimulus package is still pending due to the bipartisan stalemate. Fed Governor Lael Brainard said that “the most significant downside risk to my outlook would be the failure of additional fiscal support to materialize.” With spiking Covid-19 cases and no additional aid, economists and investors are worried that the economy may turn to be weaker.

Considering AUD/USD has fallen to around 0.7050 in recent days, and the aforementioned factors could bring more erosion in risk sentiment, the pair is expected to see more declines in future trading.above-mentioned

All the above is provided by WikiFX, a platform world-renowned for foreign exchange information. For details, please download the WikiFX App: bit.ly/wikifxIN

Chart: Trend of AUD/USD