AUD/USD falls after Donald Trump wins the US presidential election.
Republican victory raises concerns about trade war with China, weighing on AUD.
RBA's hawkish stance might limit the AUD losses
The AUD/USD pair plunged 1.25% to 0.6555 on Wednesday after Donald Trump's US presidential election victory sparked enthusiasm for the US Dollar. Fears of a trade war with China, fueled by the Republican victory, weighed on the Australian Dollar.
However, the Reserve Bank of Australia's (RBA) hawkish stance might limit the AUD losses as this week Governor Michelle Bullock highlighted the need to maintain rates at restrictive levels to control inflation.
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