DAILY CURRENCY OUTLOOK

* Aussie hits 6-week high overnight
* USD weighed down by US mid-term elections
* US Inflation nos. due tomorrow tonight

The AUD/USD opened this morning up ½ cent on yesterday’s close of 0.6454. For most of the night, the Aussie was treading water around the 0.6460- 0.6480 range, however, at approx. 2 am AEDT (10 am New York 8 Nov), it got on a roll. By 3.45 am, 0.6550 was reached (a level not seen since 23 September) however, as has been all too familiar lately, within 2-3 hours, it was sold back down to 0.6480 and opens a touch higher at 65 cents. Against the other major currency pairs, e.g. AUD/EUR and AUD/GBP… there was little movement, so again it was very much a USD story. The move in the USD was driven largely by the market’s focus on the US mid-term elections. Early indications are for a Republican victory. If so, this would make things difficult for the Biden administration (Democrats) in the remaining 2 years of office with regard to policy and agenda. Markets reacted by selling the USD, thinking this may cause the US Federal Reserve to take a more cautious approach to rate setting (again, a very familiar theme). Tomorrow all-important US inflation numbers for October will be keenly watched and digested and have markets further on edge.