The Australian dollar is under pressure as US political risk intensifies

Christian Augustin/Getty Images

The Australian dollar is under pressure in early Asian trade on Monday, undermined by increased political risk following news that the FBI would re-open Hillary Clinton’s email investigation, casting doubt on the outcome of the US election that will be held on November 8.

The AUD/USD currently sits at .7585, down 0.13% on Friday’s closing level.

AUD/USD Hourly Chart

“AUD/USD crept briefly back on to a 0.76 handle before finishing New York trade 0.13% higher at 0.7599 but has started the news week back nearer 0.7580 after the weekend brought nothing to calm Friday’s nerves,” said Ray Attrill, global co-head of FX strategy at the NAB.

“An ABC/Washington Post poll released Sunday scores decided voters 46/45 for Clinton while the fivethirtyeight.com website puts the probability of Trump win at just over 20% from under 14% a week ago.”

Underlining the increase in risk aversion seen this morning, the USD/JPY is sharply lower while spot gold had added 0.64%. Both are measures on investor confidence.

While there is a plethora of economic data releases scheduled today — private sector credit from Australia, retail sales and industrial output from Japan and industrial output figures from South Korea just to name four — none appear likely to move the Aussie decisively one way or another.

Given the fluid nature of the FBI investigation, and the speculation over the impact on the election outcome it may have, headlines on the subject look set to play a leading role in dictating movements in the US dollar today.

Later in the session, markets will also have to digest inflation figures from the eurozone along with personal consumption and income figures from the US, including all important core PCE inflation, the Federal Reserve’s preferred measure on gauging inflationary pressures.

  • AUD/USD 0.7585 , -0.001 , -0.13%
  • AUD/JPY 79.2 , -0.27 , -0.34%
  • AUD/CNH 5.1455 , -0.0025 , -0.05%
  • AUD/EUR 0.6901 , -0.0006 , -0.09%
  • AUD/GBP 0.6222 , -0.0004 , -0.06%
  • AUD/NZD 1.0592 , -0.0012 , -0.11%

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.