AUD/USD gets 0.6450 near traction if Anthony Albanese wins another term of office as Australian Prime Minister
- The edges of AUD/USD are higher in Monday's early session of Asia to 0.6450.
- Albanese won another term of office on Saturday as the Prime Minister of Federal Election.
- The US NFP rose 177,000 in April, which is stronger than expected.
AUD/USD pair collects strength to about 0.6450 during the Asian session on Monday. The Australian Dollar (USD) strengthens against Greenback after Australian Prime Minister Anthony Albanese won the second three -year term in the Federal elections in 2025, making great benefits on Federal Election on Saturday.
Labor Party leader and Prime Minister Albanese claimed most of the votes in Parliament on Saturday. Albanes became the first leader over the decades to secure his second term by defeating opposition leader Peter Dutton from the right -wing liberal national coalition. The expectations of the political continuity under Albanese after his second term re-election may be promoted in the near future.
Attention is paid to the possible improvement of US-China trade relations. The Chinese Ministry of Commerce announced on Friday that Beijing was considering a US offer to participate in trade negotiations, a week after US President Donald Trump claimed that talks were already underway. However, all the escalations of the two largest economy in the world can consider China-Proxy Aussie, as China is the main trading partner of Australia.
Data published on Friday's US Work Statistics Bureau (BLS) showed that the United States (USA) non -agricultural payroll (NFP) increased by 177,000 in April. This figure followed the 185,000 increase in March (228,000 amended) and reached 130,000 above the consensus of the market.
In the meantime, the unemployment rate in April remained 4.2%, as expected, while the average hourly income remained permanently at 3.8% of YOY at the same period. The US Dollar (USD) is weak despite the US NFP report because traders are concerned about Chinese tariff titles. Later on Monday, traders will monitor US ISM Services Managers Index (PMI) to get a fresh impetus.
Australian Dollar Fuck
One of the most important factors in the Australian Dollar (AUD) is the level of interest rates set by the Australian Reserve Bank (RBA). As Australia is a resource -rich country, the second key manager is the price of its largest export, iron ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as Australian inflation, its growth rate and trade balance. Market minds-investors accept more risky assets (risk-on) or are looking for safe Haven (risk-field) -s factor, which is a positive risk for AUD.
The Australian Reserve Bank (RBA) affects the Australian dollars (AUD), setting Australian banks to borrow to each other. This affects the level of interest rates for the entire economy. The main purpose of the RBA is to maintain a stable inflation rate of 2-3%by adjusting the interest rates up or down. Relatively high interest rates compared to other major central banks support AUD and the opposite relatively low. Quantitative alleviation and effort with the former AUD negative and another can also be used to influence the credit conditions.
China is the largest trading partner in Australia, so the health of the Chinese economy is a significant impact of the Australian dollar value (AUD). If the Chinese economy is doing well, it buys more raw materials, goods and services in Australia, raising the demand for AUD and pushing its value. The opposite is that the Chinese economy does not grow as fast as it was thought. Therefore, positive or negative surprises of Chinese growth data are often a direct impact on the Australian dollar and its couples.
Raudmaa ore is the largest export of Australia, which, according to the 2021 data, is $ 118 billion a year, which is the main destination of China. Therefore, the price of iron ore may be the Australian dollar leader. In general, AUD also rises the price of iron ore as the demand for all currency is increasing. The opposite is the case when the price of iron ore falls. Higher prices for iron ore also cause Australian positive trade balance, which is also positive for AUD.
A trade balance, which is a difference between what the state earns from its exports compared to what it pays for imports is another factor that can affect the value of the Australian dollar. If Australia produces highly coveted exports, it becomes a purely surplus demand from foreign buyers who want to buy their exports compared to what it spends to buy imports. Therefore, the positive net trade balance is strengthened by the AUD if the trade balance is negative.
