And once again the reason for the drop is strength in the greenback, which is rising against most major currencies (except the Mexican peso, which is soaring as Trump’s chances of an upset at this week’s election falls).
Not only is a Clinton victory preferred by many investors, as it’s less of an unknown to a Trump presidency, it would also boost the chances of a December rate hike by the Fed – which in turn supports the US dollar.
“The Aussie dollar remains supported but it is getting formidable resistance above the US77¢ level. It’s more likely the Aussie will remain relatively contained but susceptible to any pre-election jitters,” said OANDA senior currency Stephen Innes.
