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Pre-Inauguration Jitters Boost Australian Dollar US Dollar Exchange Rate; High Turbulence Ahead

US Dollar Exchange Rates

The Australian Dollar US Dollar exchange rate has been positive and stable today, thanks to a positive response among investors to recent Australian jobs data.

The US Dollar has weakened on account of Donald Trump’s looming inauguration as US President.

Australian Dollar Trumps US Dollar as US Presidential Inauguration Draws Near

While the week’s iron ore boom has seemingly run its course today, this hasn’t been enough to discourage demand in the Australian Dollar US Dollar exchange rate, which has climbed by 0.6% after December’s AU jobs data was released.

While unemployment did unexpectedly rise from 5.7% to 5.8%, this was accompanied by a rise in participation as well as more people gaining full and part-time employment. The overall employment change figure beat forecasts by 3.5k to clock in at 13.5k.

US Dollar investors have been much less confident in the USD today, with a -0.6% drop in the USD AUD exchange rate preceding the inauguration of Donald Trump as US President.

Other negativity impacting the US Dollar has been the concern that Fed policymakers will clash with Trump’s financial advisors, given that what the incoming administration views as ‘weak’ growth is what the Fed sees as a return to normalcy.

Future Australian Dollar Gains Tied to Home Sales, Inflation Rate Figures

Incoming Australian data will consist initially of this morning’s HIA new home sales figure, which previously fell by -8.5%.

Further ahead, the coming Wednesday morning is set to bring Q4 inflation rate stats; Q3 figures posted positively and a repeat performance would be welcomed by investors.

US Dollar Losses Forecast if President Trump Fails to Curb Un-Presidential Tendencies

New political leadership for the US has nearly arrived and the US Dollar may end up being one of the first casualties of the new administration.

Recently, demand for the US Dollar has fallen due to concerns about Trump’s first 100 days, but even his first few days in office might trigger major volatility for the US Dollar and see it slip further against the Australian Dollar.

If Trump commits to some of his more radical campaign pledges, such as mass deportations and a vast border wall with Mexico, confidence may drain quickly from US Dollar investors.

Additional negativity is likely to be caused if Trump continues with his practice of releasing daily caustic Twitter posts, given that such behaviour is not considered fitting with the highest office in the country and has already caused significant volatility in the stock markets.

Recent AUD USD Interbank Exchange Rates

At the time of writing, the Australian Dollar US Dollar (AUD USD) exchange rate was trending in the region of 0.75 and the US Dollar Australian Dollar (USD AUD) exchange rate was trending in the region of 1.32.