Australian Dollar Falls Amid Trump Trades Optimism

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Wednesday, as optimism over the U.S. presidential election as early results show Republican candidate Donald Trump surging ahead of Democratic candidate Kamala Harris.

Traders also remain cautious ahead of the U.S Fed's interest rate decision tomorrow.

The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.

Tuesday, the Australian dollar strengthened against other major currencies in the Asian session, after Australia central bank maintained its interest rate for the eighth straight session at a 13-year high, as underlying inflation remains too high.

The policy board of the Reserve Bank of Australia governed by Michele Bullock decided to hold the cash rate target at 4.35 percent. The bank had previously changed its rate in November 2023, when it was lifted by 25 basis points to the highest level since late 2011.

In the Asian trading today, the Australian dollar fell to nearly a 3-month low of 0.6512 against the U.S. dollar, from an early nearly a 2-week high of 0.6642. The aussie may test support around the 0.63 region.

Against the Canadian dollar, the aussie slid to nearly a 2-month low of 0.9073 from yesterday's closing value of 0.9174. On the downside, 0.93 is seen as the next support level for the

The aussie edged down to 1.1002 against the NZ dollar, from Tuesday's closing value of 1.1045. The next possible support level for the aussie is seen around the 1.11 region.

Against the euro and the yen, the aussie edged down to 1.6494 and 100.28 from an early 8-day highs of 1.6416 and 101.02, respectively. If the aussie extends its downtrend, it is likely to find support around 1.67 against the euro and 98.00 against the yen.

Looking ahead, PMI reports from European economies and U.K. for October and Eurozone PPI for September are slated for release in the European session.

In the European session, U.S. MBA weekly mortgage approvals data, Canada Ivey PMI for October and U.S. EIA crude oil data are scheduled for release.