The Australian dollar received an unexpected boost today after Malcolm Turnbull ousted Tony Abbott in a snap poll to become Australia’s prime minister.
In a vote of 54 to 44, Mr Turnbull comfortably won the vote with Deputy prime minister Julia Bishop also retaining her position.
OM Financial senior client adviser Stuart Ive said the Australian dollar initially dropped after the announcement of the vote, but quickly rose once the results were in.
He also noted that the electorate will be glad to see a new face with the expectation that Mr Turnbull may breath some life into the economy.
“The market decided that this was a good thing. Hence, the good performance in the Australian dollar despite stock markets coming off and metals being a little bit weaker overnight,” Mr Ive said. “Abbott was performing poorly in the polls, there was no real momentum behind the economy during his term, so a fresh person gives fresh thinking.” Mr Ive’s said
The news may lend some support leading into Thursday’s decision by the US Federal Reserve on interest rates but the Aussie dollar expected to drift lower as traders place their bets on the Feds move.
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