FXStreet reports that the US election outcome may not have delivered a blue wave but the overall macro picture favouring risky assets, USD weakness and low global yields remain intact, economists at Westpac inform.

“A Biden presidency still implies some fiscal support, with monetary policy likely to pick up any slack. Global liquidity conditions will remain supportive regardless. Challenges to the election result in coming weeks appear to have weak legal foundations and are unlikely to upset markets.”

“Further DXY weakness seems likely, albeit not as pronounced as assumed under a blue wave outcome. Biden’s freer hand on the global front under divided government leaves a relatively more bullish outlook for emerging market currencies intact too, notably those most impacted by trade wars such as CNY. AUD is likely to test resistance within its recent 0.70-0.74 range.”