After an interesting weekend, the Aussie is seeing some improvement today as the Down Under currency is seen as a safer bet than European currencies right now. After the elections in France and Greece, many are wondering what’s next for the eurozone, and that is giving the Australian dollar a bit of a boost today.
Aussie is even higher against the US dollar — and there is some risk aversion in the markets as traders wonder what to do next. In Europe, Francois Hollande won the French election, beating out incumbent Nicolas Sarkozy. In Greece, an anti-austerity party did quite well, and it looks as though the new government may not stick to the austerity measures required by the recent bailout. Once again, rumors that Greece could exit the eurozone are circulating.
Interestingly, this is not weighing on the Aussie as risk aversion normally would. Instead, the Australian dollar is higher than the euro and the pound, which might be expected, and the US dollar as well, which is a bit of a surprise. Aussie remains vulnerable, though. The Reserve Bank of Australia has indicated that it will ease monetary policy soon, and that means that a rate cut is likely in the near future.
At 14:06 GMT AUD/USD is up to 1.0190 from the open at 1.0119. EUR/AUD is down to 1.2799 from the open at 1.2807. GBP/AUD is down to 1.5852 from the open at 1.5923.
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