Aussie Races Higher After Elections Results

Aussie Races Higher After Elections Results


The Australian Dollar climbed against rivals following the results of the Australian Federal elections. The surprise win of Prime Minister Scott Morrison, beating the center-left labor party, eased investors concerns over the economic outlook. Investors were afraid that the win of the less-business friendly center-left labor party could hurt the economy. On the other hand, the People Bank of China comments on the Yuan’s depreciation supported the Aussie. The AUDUSD rose from a four-month low of $0.6864 to trade higher at $0.6927, and the EURAUD tumbled from a high of 1.6262 to a low of 1.6100.


The dollar index which measures the greenback against a basket of major currencies extended its daily winning streak to five, closing at 98.01. Recently, the strong US economic data confirmed that the US economy is outperforming its rivals, supporting the dollar in being investor’s safety. Moreover, the ongoing uncertainty over Brexit and the coming risks from the European Parliamentary elections could provide additional support to the buck. The US 10-Year yields rose to 2.408%, the USDJPY jumped to a high of 110.32, and the EURUSD drifted lower to $1.1150.


Metals prices plunged as the dollar edged higher. The price of a gold ounce dropped to a two-week low of $1274, the silver ounce logged a fresh 2019 low of $14.27, and palladium hovered near $1320.


Oil prices kicked-off the week on a gap higher following the OPEC+ monitoring committee meeting on the weekend. The committee met ahead of the periodical meeting which is taking place in June in order to asses the current oil market conditions following the latest developments. The Saudi Energy Minister declared that there was a consensus among producers to continue reducing inventories. The West Texas Intermediate crude futures climbed to a high of $63.79, and Brent futures rallied to a three-week high of $73.39.

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