The Australian dollar fell against all of its major counterparts at today’s Forex market opening, as Australia may be left without a majority government for the first time since 1940. The Aussie has immediately entered an uptrend after this negative opening.
Hung parliament isn’t anything good for the country’s currency and, after Saturday’s federal election, Australia is quite close to the situation where no party can get a necessary majority to form government. From the other point of view, this situation may eventually prove useful to some big Australian companies as the new government will take into account some of the proposals that include tax cuts for the mining industry. But for now, the election brings only negative effect for the Australian dollar.
The currency opened with a huge weekend gap against the US dollar and the Japanese yen. But, being in an uptrend since the opening, the Aussie managed to recover a big part of this loss. Despite the recover trend, it still remains below Friday close level.
AUD/USD rose from 0.8869 to 0.8927 as of 9:30 GMT today after going down from 0.8939 over the weekend. AUD/JPY went up from 75.92 to 76.20 (after closing at 76.45 on Friday). AUD/NZD rose from 1.2567 to 1.2613 and is still below the last week’s close of 1.2640.
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