Aussie Up After Australia Conservative Coalition's Surprise Election Victory
20 May 2019 - 1:53PM
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The Australian dollar gained ground against its major opponents
in the Asian session on Monday, after Australia's ruling
conservative party returned to power for a third term in the
federal election, defying the exit polls that pointed to a Labor
win.
Prime Minister Scott Morrison's Conservative coalition obtained
76 seats in the 151-seat House of Representatives. At least 76
seats are required to form a majority government.
Labor secured just 66 seats.
Labor leader Bill Shorten conceded the defeat and resigned
following his party's surprise defeat.
Morrison had promised tax cuts and a tough immigration policy.
The coalition plans to improve mental health services, social media
content laws and drought recovery policies.
The aussie firmed to a weekly high of 1.0591 against the kiwi
from Friday's closing value of 1.0534. The aussie is seen finding
resistance around the 1.07 level.
The latest survey from BusinessNZ showed that the services
sector in New Zealand continued to expand in April, albeit at a
slower pace, with a Performance of Services Index score of
51.8.
That's down from 52.3 in March, although it remains above the
boom-or-bust line of 50 that separates expansion from
contraction.
The aussie that ended last week's deals at 0.6866 against the
greenback climbed to a 4-day high of 0.6930. The aussie is likely
to challenge resistance around the 0.705 level, if it rallies
again.
The aussie appreciated to a 6-day high of 76.34 against the yen,
up from last week's closing quote of 75.56. The next key resistance
for the aussie is likely seen around the 78.00 level.
Final data from the Ministry of Economy, Trade and Industry
showed that Japan's industrial production declined
less-than-estimated in March,.
Industrial production fell a seasonally adjusted 0.6 percent
month-on-month in March, smaller than the 0.9 percent decrease
initially estimated.
The Australian currency strengthened to a weekly high of 1.6098
against the euro and 4-day high of 0.9307 against the loonie from
last week's closing values of 1.6239 and 0.9242, respectively. On
the upside, 1.57 and 0.95 are likely seen as the next resistance
levels for the aussie against the euro and the loonie,
respectively.
Looking ahead, Eurozone current account data for March is due in
the European session.
At 12:30 pm ET, the Bank of England Deputy Governor Ben
Broadbent will speak at Imperial College Business School in
London.
Federal Reserve Governor Richard Clarida will deliver a speech
about the Federal Reserve's policy strategy, tools, and
communication practices at an event hosted by the Federal Reserve
Bank of New York at 1:05 pm ET.
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