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Australian Dollar Climbs After Labor Victory In Federal Election


The Australian dollar appreciated against its most major counterparts in the Asian session on Monday, after the country’s Labor Party won the federal election held over the weekend, defeating the ruling party for the first time since 2013.

Labor Party leader Anthony Albanese was sworn in as the new Prime Minister and is set to form a majority government.

“Australians have voted for change. My government intends to implement that change in an orderly way,” Albanese said in his first press conference.

Outgoing PM Scott Morrison admitted the defeat on Saturday and said that he would step down as leader of his conservative Liberal Party.

Investors cheered the election result that delivered a clear winner, helping lift the Australian stock market and the domestic currency.

Asian shares were mixed as investors focused on a rise in Covid cases in China’s capital Beijing and the outlook for the global economy.

The aussie showed mixed performance against its major rivals on Friday. While it rose against the euro, it held steady against the greenback and the yen. Versus the kiwi, it fell.

The aussie was up by 1.2 percent against the greenback, touching over a 2-week high of 0.7126. The pair had finished Friday’s deals at 0.7041. The aussie may face resistance around the 0.73 region, if it gains again.

The aussie added 1.1 percent to touch a 5-day high of 91.04 against the yen. The pair was valued at 90.09 when it ended trading on Friday. Further rally in the currency may challenge resistance around the 93.00 level.

The aussie firmed to over a 2-week high of 1.4885 against the euro, gaining 0.6 percent from Friday’s close of 1.4980. Next near term resistance for the aussie is likely seen around the 1.45 level.

The aussie registered a gain of 0.8 percent against the loonie, reaching nearly a 2-week high of 0.9109. At Friday’s close, the pair was worth 0.9040. Should the aussie strengthens further, it is likely to test resistance around the 0.92 region.

The aussie, however, dropped to nearly a 3-week low of 1.0973 against the NZ currency from last week’s closing value of 1.0987. The aussie is seen facing support around the 1.075 area.

Looking ahead, German Ifo business sentiment index for May will be released in the European session.

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