- Biden leads in the polls; a surprise can’t be ruled out
- Covid-19 cases spike &, fiscal stimulus deadlock drags on sentiment
- AUD/USD breaks support at 0.7018 could open the door to more losses
5 DAYS UNTIL THE US PRESIDENTIAL ELECTION
A BBC News poll showed Democrat Joe Biden leading ahead of President Trump by a 9-point margin with just five days to go to the election. This is approximately 2 points higher than the 7-point average Joe Biden has held for weeks.
FISCAL STIMULUS STALEMATE
The deadlock over fiscal stimulus continues to move the market. Fed Governor Lael Brainard warned Congress that the absence of another rescue package poses “the most significant downside risk”. with the central bank doing all that it can to steady financial markets the need for more fiscal stimulus has been stressed.
The stalemate comes as Covid-19 cases are surging across the world and in the US Tighter lockdown restrictions and no additional aid raises fears of a double dip recession hurting demand for cycle-sensitive pairs such AUD/USD.
AUD/USD OUTLOOK
AUD/USD is testing support at 0.7018 after failing to break above a multi-week downtrend on several As AUD/USD slips deeper within a compression zone – marked out by a descending resistance and the above mentioned support – the chances of a breakout could increase.