The Reserve Bank of Australia are due to meet tomorrow to decide whether or not they’ll cut interest rates. My personal feeling is that there may be a cut to 3% in order to give the economy a lift. With a recent slowdown in China we have seen Australia’s economy struggle outside the mining industry and so a rate cut could give the boost needed. The US election is due to take place tomorrow night and I feel if Obama comes in we’ll see USD strength and if Romney comes in we could the US Dollar weaken. With USD strength it often goes hand in hand with the AUD so if Obama gets in we could see strengthening for the AUD even if the RBA cuts interest rates tomorrow.
For further up to date information and detailed analysis of what is happening in the currency markets after the US elections feel free to contact me directly. Tom Holian [email protected]