* Polls show Obama has slight edge in several key swing
* Dollar index down 0.1 pct, AUD boosted by steady RBA rates
* Greek vote, ECB policy meeting also in focus
By Ian Chua
SYDNEY, Nov 7 The U.S. dollar was a touch softer
in Asia on Wednesday, having retreated from a two-month high as
markets awaited the outcome of the presidential election, while
the Aussie dollar stood out with broad gains after interest
rates at home were left steady.
The dollar index was last at 80.622, recoiling from
Monday's high of 80.843 as the euro bounced back above $1.2800
, from a near two-month trough around $1.2764.
Traders said the moves were mostly position adjustments as
Americans head to the polls and markets grew hopeful the Greek
parliament will approve the government's new austerity measures
needed to secure aid from foreign lenders.
National opinion surveys showed Barack Obama and Mitt Romney
in a virtual dead heat, although the Democratic incumbent has a
slight advantage in several vital swing states.
Christopher Vecchio, Currency Analyst at DailyFX, said the
market appeared to be positioned for an Obama victory.
"Attention will quickly shift to the European Central Bank
meeting later this week, considering that Spain has continued to
drag its feet with respect to a bailout. The EURUSD looks to be
constrained by 1.2750 to the downside and 1.2900 to the upside
until the ECB meets, barring unforeseen event risk."
Traders said the market would also start worrying about the
U.S. fiscal cliff, following a resolution to the drawn-out race
for the White House.
Against the yen, the dollar bought 80.36, having
survived a brief dip below 80.00.
The Australian dollar was the best performing major currency
on Tuesday, having climbed more than 0.7 percent to a 5-1/2 week
high of $1.0447 after the Reserve Bank of Australia kept
interest rates unchanged, but left the door ajar for more cuts.
Markets had been in two minds about an easing at
the Nov. 6 policy meeting, but were more certain of one early
The break above $1.0400 has paved the way for the Aussie to
test the Sept. 28 high of $1.0474, followed by $1.0624 -- a peak
set on Sept. 14.
The Aussie hit six-month highs of 84.04 yen,
while the euro slumped to a two-month low of A$1.2236
Australia's employment data on Thursday will be the next
flash point for Aussie-dollar bulls, followed on Friday by a
raft of data on China, Australia's single biggest export market.
"Given that much of the domestic data in question is still
showing some vulnerability, the exchange rate still high, and
the outlook for the global economy is constrained, a cut might
still be a reasonable bet in December," said Greg Gibbs,
strategist at RBS.
"However, the timing of the next cut has become more data