The Australian dollar hit a six-month high earlier today. Emphasis on the word “earlier”.
It’s now getting creamed, unwinding as markets continue to price in the increased likelihood of Donald Trump taking the US presidency.
The price action today is almost identical to that seen before and during the UK Brexit referendum, held in late June.
The only question now is whether it will trade in the same manner after the result is known. At this point it looks likely.
The AUD/JPY is now off more than 5%, on track to record its largest daily decline since Brexit. If Trump wins, it’s likely to be significantly larger.
Here’s the current scoreboard as at 2.28pm in Sydney:
- AUD/USD 0.7613 , -0.0148 , -1.91%
- AUD/JPY 77.28 , -4.31 , -5.28%
- AUD/CNH 5.1567 , -0.1173 , -2.22%
- AUD/EUR 0.6782 , -0.0256 , -3.64%
- AUD/GBP 0.6090 , -0.0177 , -2.82%
- AUD/NZD 1.0371 , -0.0134 , -1.28%
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