Political developments were at work in the forex markets over the course of Monday after the Australian election resulted in a surprising result.
Prime Minister Scott Morrison, whose Liberal-National coalition had been widely expected to lose a general election, found himself back in power.
The opposition Labor Party had been expected to take power, although this did not materialise.
The Australian dollar was up half a percentage point in the AUD/USD pair against the US dollar at one stage in early trading, reaching $0.6904.
Elsewhere, the US dollar index, which monitors the performance of the greenback in relation to six other currencies from across the globe, went up to 97.970.
Positive statistics from the Japanese economy weren’t enough to sustain the yen across the board.
While the economy in the country was revealed to be growing at an annualised rate of 2.1%, the US dollar still managed to gain 0.1% against the Japanese yen and reach 110.195.
The euro was up slightly in its pair with the dollar and reached $1.1161 at one stage.
A new forex trading week is now here, and there’s plenty to keep an eye on as the week progresses.
Today (Monday) sees a slight slowdown in North American trading. This is due to a closure of banks in Canada for the Victoria Day public holiday.
Over in Europe, there’ll be a report from the German central bank, the Bundesbank, at 10am GMT. This is likely to be scrutinised by euro traders for clues about the health of the formerly struggling German economy.
There’ll be three significant global central banker speeches taking place this afternoon. Dr Ben Broadbent, who is a member of the Bank of England’s Monetary Policy Committee, is due to speak at 4.30pm GMT. Richard H. Clarida, who is the Vice Chairman of the Federal Reserve System’s Board of Governors, is due to speak at 5.05pm GMT. While Jerome Powell, the Chair of the US Federal Reserve, is scheduled to speak at 11pm GMT.
Looking ahead to tomorrow, the minutes of the Reserve Bank of Australia’s latest meeting are due at 1.30am GMT.
There’ll also be a speech from the bank’s Governor, Philip Lowe, at 2.15am GMT.
US home sales data is expected later in the day at 2pm GMT. Existing home sales information for the month of April will be out, and it is expected to show a month on month change from 5,210,000 to 5,330,000.
Retail sales data for the first quarter of 2019 is due out of New Zealand at 10.45pm GMT. This is expected to show a quarter on quarter change from 1.7% to 0%.
On Wednesday, a speech from the Bank of Japan’s board member Yutaka Harada is due at 1.30am GMT.
James Bullard, President of the Federal Reserve bank of St. Louis, is expected to speak at 5am GMT.
There’ll also be a key speech from the European Central Bank’s (ECB) President Mario Draghi. This is due to occur at 7.30am GMT.