Seven days after the Hillary Clinton email saga began for a second time, FBI director Comey announced that no action will be warranted after clearing a further 650,000 emails. This combined a strong 24 hours from the Clinton Campaign as the news she won’t be prosecuted is combined with NBC and Wall Street Journal weekend polls reinforcing her strength. USD/JPY immediately jumped 60 pips on the news to 103.70 but world trading sentiment generated by the election continues to run the world. The Canadian Dollar and the Mexican Peso, the two benchmarks for the election due to their close geographical and economic ties gained strength as a Clinton white house becomes a symbol for continental trade and prosperity.
The FBI clearing Clinton has generated slight risk on trading helping to buoy the Australian Dollar to 0.7710 breaking above key October resistance. It does however offer little topside with bearish setup, complimented by poor Aussie Construction CPI, encouraging a pullback to 0.7680. AUD/NZD cross has settled at 1.0460 reaching a fresh 6 week low as stats New Zealand revised their Q3 CPI to 0.3% from 0.2% lifting yearly CPI for this year to 0.4%. More positive signs questioning whether the RBNZ will cut rates in December.
