Australia finally has a new government with Bill Shorten conceding defeat over the weekend. Political forecasts suggest when counting finally concludes perhaps by the end of this week that Prime Minister Malcolm Turnbull could win as many as 76 seats allowing him to pass legislation in his governments own right.
It appears as though the market has viewed the result favourably with the Aussie dollar up marginally this morning, but when you consider that European and U.S equities surged by as much as 1-2% on Friday evening then it’s hard to determine which is the real driver. Needless to say further uncertainty has been removed from the market with the Turnbull win ans so we should see risk assets like the Aussie bounce back a bit further.
We have nearly no data out over the next two days, but Aussie employment numbers are due on Thursday morning followed by the Bank of England’s latest monetary policy meeting where they’re tipped to cut U.K interest rates to 0.25%. This will obviously have a huge impact on AUD/GBP likely to the upside, so those sitting on GBP with a need to convert it back to AUD should consider doing this ASAP.
DATA RELEASES TODAY:
AUD EXCHANGE RATES:
AUD/USD – 0.7560
AUD/GBP – 0.5837
AUD/EUR – 0.6842
AUD/NZD – 1.0351
AUD/JPY – 76.121
***Above rates are indiciative wholesale rates and intended as a quide only***
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Senior Corporate FX Dealer
Contact Patrick for a quote on 0431 278 632