The Aussie could lose some of the ground gained in the last few months against Sterling as a result of the US election. If Clinton wins I believe the markets will be confident of a Federal Reserve interest hike being just around the corner.
In turn this would mean that investors could remove their funds from the riskier positions in AUD and put them in the US Dollar where similar returns are deemed safer.
This could bring an end to the AUD strength. Alternatively, if Trump was to win tomorrow I believe it could be the complete reverse effect. The Federal Reserve may reconsider their decision to raise interest rates and keep the rate at the current level. There could also be a major sell-off of US Equities with a Trump victory and investors could move their funds out the States. The AUD is currently a very popular destination for investors and there could be further investment in that area.
There is so much uncertainty tomorrow the swings could be enormous on the markets. No matter what your currency requirement there will be an effect from the election as the President of the US is such a big influence in global affairs.
This week is fairly quiet from a data perspective for the Aussie with Consumer Inflation expectations and Home Loan figures due tomorrow evening. I think it’s safe to say a surprise in the US Election will cause substantially more volatility than the data that may be released.
As it stands Clinton is leading Trump in most major polls except a handful, the IBD/TIPP has Trump ahead by 2%. That being said, polls are not always indicative of results.