Scott Morrison has been defeated in the local Australian elections held over the weekend conceding to the Labour party and new Prime Minister Anthony Albanese. The centre left Labour party won 72 of the 76 seats needed for a parliamentary majority. This ends 9 years of leadership by the centre right Liberal party. The Australian Dollar (AUD) as predicted never really reacted to the headline. The Aussie was however bid off Monday’s open in response to US Dollar (USD) weakness and better bid equity markets. On the menu this week we focus on Fed chair Powell speaking tomorrow and FOMC minutes Thursday. We expect further upside to develop and a retest of the “fib” 50% retracement at 0.7200.
Current Level: 0.7076
Resistance: 0.7270
Support: 0.7000
Last Weeks Range: 0.6870-0.7072