Forex Today: US Dollar retreats as US elections and RBA loom

The US dollar weakened in the latest session as traders positioned ahead of the upcoming US elections and a Reserve Bank of Australia policy decision, according to the FXStreet headline. The move reflects a transmission through policy-expectation and event-risk channels: ahead of binary political outcomes and a central bank meeting, investors tend to reduce directional dollar exposure, which can pressure the greenback against majors if rate-differential expectations shift. The most exposed pairs are typically those with the Australian dollar, given the RBA's direct role in the outcome, alongside broader dollar crosses that are sensitive to US fiscal and rate-path expectations. The next concrete catalyst traders will watch is the RBA's rate decision and accompanying statement, since any surprise on the cash rate or forward guidance would reprice Australian yields and feed back into AUD and dollar-cross volatility.

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