AUD: Contextualising the US election result – ANZ

Daniel Been, Head of FX Research at ANZ, suggests that the US election result will have a lasting and negative impact on the AUD, but it will take some time to understand the scale of the risk as uncertainties about how much President Trump’s policies will differ from Nominee Trump’s rhetoric remain.

Key Quotes

“In the near term, ample liquidity has once again short-stopped the initial negative reaction (just as it did in the wake of Brexit) and with the campaign over, this period of calm could persist in the near term.”

“However, over the medium term, Trump’s more protectionist stance on global trade and his preference for looser fiscal policy and a smaller role for monetary policy should be supportive of the USD – particularly against small open economies like Australia.”