Aussie dropped earlier in trading as ALP Labor veteran Simon Crean called for a leadership spill. The Australian dollar dropped as political uncertainty reigned in Australia. Concerns about Julia Gillard’s stint as Prime Minister weighed on the Australian dollar, but the Aussie seems to be coming out of it a bit right now, with Gillard’s leadership confirmed.
There’s a lot else going on in the world right now, from the new Bank of Japan governor, to the Cyprus situation in the eurozone, to continuing budget battles in the United States. Many currencies are rangebound today, and the Aussie has managed to overcome some of its earlier losses. For the most part, the Forex market is still waiting for some direction.
Risk appetite is likely to be in short supply, though. Equities are lower, and the euro is struggling. However, commodities like gold and oil are a little higher, and that does help the Aussie, since the Australian dollar is a commodity currency (particularly attached to gold).
For now, it’s more of a wait and see situation. Julia Gillard survived the leadership threat, and there is interest in what else happens in the world.
At 14:47 GMT AUD/USD is up to 1.0439 from the open at 1.0377. EUR/AUD is down to 1.2349 from the open at 1.2466. GBP/AUD is steady at its opening level of 1.6832.
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