The value of the Australian Dollar (AUD) has been volatile lately, on account of the recent political machinations of Prime Minister Malcolm Turnbull.
The US Dollar (USD) has also been mixed against its peers, although this is mainly on account of a recent report that has pointed to a disappointing slowdown in national business growth.
The main reason for reluctance to invest in the Australian Dollar (AUD) has come from the seats of power in the Australian Parliament, where it appears likely Malcolm Turnbull will be calling for a general election on July 2nd.
This is on account of the PM’s previous efforts to get the Australian Building and Construction Commission (ABCC) bill passed in the Senate meeting with two rejections; under an obscure piece of the national constitution, Turnbull now has grounds to trigger a ‘double-dissolution election’, during which he will likely be hoping for a better stacking of the parliamentary deck in his favour.
However, calling the election now would place parliament in limbo, therefore the PM is not expected to pull the trigger on an election until after May 3rd, when the 2016 Budget is announced.
Reflecting the uncertainty of investors, the Australian Dollar has risen by 0.5% against the Canadian Dollar (AUD/CAD) but fallen by -0.5% against the Euro (AUD/EUR) and by a smaller amount against the US Dollar (AUD/USD).
The US Dollar (USD) has lost out against a few of its rivals recently, on account of recent comments made by Fed official William Dudley. The policymaker has stated that:
‘Monetary policy adjustments are likely to be gradual and cautious, as we continue to face significant uncertainties and the headwinds to growth from the financial crisis have not fully abated’.
Gains for the ‘Buck’ have included 0.4% against the Canadian Dollar (USD/CAD), while losses have included more than -0.2% against the Norwegian Krone (USD/NOK), the Pound Sterling (USD/GBP) and the Swiss Franc (USD/CHF).
The next ecostats that could influence the AUD/USD exchange rate will come from the US first, in the form of a speech from Fed official Eric Rosengren.
Following on from this shortly afterwards will be the high-impact Australian announcement of the morning – the Reserve Bank of Australia (RBA) meeting minutes for April.
The Australian Dollar to US Dollar (AUD/USD) exchange rate has been trending in the region of 0.7746 and the US Dollar to Australian Dollar (USD/AUD) exchange rate has been trending in the region of 1.2914 recently.
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