Australian Dollar plunges around 2% as Trump trades optimism boosts US Dollar

• The Australian Dollar depreciates as traders adopt caution ahead of the results of the US presidential election.
• The Aussie Dollar could regain momentum as RBA Governor Michele Bullock reaffirmed a hawkish stance on Tuesday.
• Georgia exit polls indicate that Trump holds a 10% lead over Harris, with estimates based on less than 1% of votes counted.

The Australian Dollar (AUD) retraces its recent gains against the US Dollar (USD) on Wednesday as market anticipation builds ahead of the US presidential election outcome. The AUD/USD pair depreciates as the US Dollar (USD) strengthens, driven by increased confidence in Trump trades following the favorable outcome for Republican candidate Donald Trump in the US presidential election.

Polling data indicate a close race between Donald Trump and Kamala Harris, with Trump currently holding an edge. On Kalshi, Trump shows a strong 57% to 43% lead over Harris, while on Polymarket, the gap is slightly wider, with Trump at 60.7% and Harris at 39.5%. These figures reflect growing support for Trump as election day approaches, but the race remains competitive.