Okay, now that the Australian elections are over and we have a clear winner...and it seems that monetary policy won't be disturbed...it's bullish for the Aussie dollar.
Kevin Rudd won the election over the current Prime Minister John Howard. So now that it is behind us, the Aussie may have better sailing. Money doesn't like political uncertainty. So now that we have that issue resolved, traders can focus once again on the rising inflation in the area.
Look for more interest rate hikes to come in the future in Aussie land.
Since the U.S. is either holding rates or continuing to reduce rates (which is my bet), then the AUD/USD is looking better all the time.
Sean Hyman
www.money-trader.com
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