Australian Dollar US Dollar Exchange Rate Volatile as Trump is Victorious in 2016 US Presidential Election
The Australian Dollar US Dollar (AUD USD) exchange rate has become increasingly unstable following the shock victory for Donald Trump in the 2016 US presidential elections.
Australian Dollar US Dollar (AUD USD) Fluctuates as Trump Victory causes Market Uncertainty
The Australian Dollar had begun to climb against the US Dollar yesterday as investors were convinced that Hillary Clinton would win the election, only to be sent reeling as it was announced that Trump would be the next US president.
The value of the ‘Aussie’ plummeted as risk appetite waned following the surprise win for Trump as investors were worried about what effects a Trump presidency may have on global currency markets.
The currency pairing did recover some of it losses following Trump’s victory speech however as traders were encouraged by his ‘presidential’ tone as he reined in his usual rhetoric.
However the Australian Dollar US Dollar exchange rate is likely to remain unstable over the coming weeks as investors try to anticipate the impact he will have on the US economy.
AUD GBP Forecast: Lowered Fed Bets May Weigh on Currency Pairing
The AUD USD exchange rate is likely to remain volatile as 2016 comes to a close, as market trepidation towards a Trump presidency may lead bets that the Federal Reserve will hike interest rates in December to decline.
The Australian Dollar is also unlikely to see much upward momentum from soaring iron ore prices as global uncertainty weighs on the ‘Aussie’ despite prices surging by a further 1.29% yesterday to bring its gains in 2016 up to 56.8%.
Current Interbank Exchange Rates
At the time of writing the AUD/USD exchange rate was trending around 0.76 and the USD/AUD exchange rate was trending around 1.30