Asian session review: the dollar fell against most major currencies before the US presidential election

During today's Asian trading, the dollar declined against the euro, yen and pound ahead of the US presidential election.

The results of public opinion polls show that the candidate from the Democratic party, Joe Biden, is ahead of the current Republican President, Donald Trump, in popularity. So, according to a survey conducted by NBC and the Wall Street Journal, the gap between Trump and Biden reaches 10 percentage points.

"The baseline scenario based on the results of the polls is a Biden victory, but we can expect pitfalls, including delaying the results of calculations due to early voting, as well as a potential challenge to the election results," says IG analyst Jini Pan.

The focus of the market this week is also the meeting of the Federal reserve system, which will be held on November 4-5. Experts would like to get more information from the Fed about what the next steps will be in relation to the volume of assets on its balance sheet, but do not expect new signals at the upcoming meeting.

The ICE index, which tracks the dynamics of the US dollar against six currencies (Euro, Swiss franc, yen, canadian dollar, pound sterling and Swedish Krona), fell by 0.25%.

Meanwhile, the Reserve Bank of Australia (RBA) lowered its benchmark interest rate to a record low, and also reduced its target yield on three-year government bonds following its meeting on Tuesday. In addition, the RBA announced the launch of a 100 billion Australian dollar quantitative easing (QE) program, aiming to support the economic recovery from the crisis caused by the coronavirus pandemic. The base rate has been lowered to 0.1% per annum from 0.25%, and the target yield on three - year government bonds has been lowered to the same level, the RBA said in a statement.