Commonwealth Bank's Foreign Exchange Strategy team released their outlook should Trump become President. They analysed his economic policies and deduced that Trump’s economic policies are very inflationary, given large income and company tax cuts, government spending and tariffs. They believe US bond yields and the US equity market will lift on the company tax cut, and the USD will surge higher, leading to capital inflows chasing higher asset price returns. Their summation was that the AUD/USD would decline 10%. For the Aussie market the camp is divided. Some believe that our bonds will rise (soften) in sympathy with the US while others prefer to look at fundamentals and see that our growth is inferior and thus rates will remain low. If the dollar does fall Australian real estate will become even more attractive given the purchasing power of the USD. If Trump is elected there is talk that some US citizens will move elsewhere and Australia is one attractive destination … assuming they can get over the wall. Click below to also read our updates on Stockland and Charter Hall.