Carnage hit US equity markets overnight, with a massive sell-off in the Tech-heavy NASDAQ, triggered by fears for the AI industry. The massive win by the Democrats, resulted in surging equity markets, only for the reality to hit home hard. Democrats may well be anti-Data Centres, thus undermining the massive AI-investment strategy in the US, which has been reflected in the NASDAQ. The US Dollar was steady, with the EUR trading 1.1235, while the GBP headed towards 1.3500. The GBP was boosted by a 25 basis point interest rate rise from the Bank of England overnight.
The AUD was smashed again overnight, slumping back to 0.6950, following the recovery back to 0.7000. The RBA had raised rates ‘Melbourne Cup Day’, but the ‘dovish commentary, had seriously dented the currency. After recovering, markets re-engaged in the prospects of the AUD, and sold it off again overnight. The NZD held ground overnight, consolidating above 0.5600.
