The swearing in of Kevin Rudd on Thursday for a second time as Australia’s prime minister brought some relief to the Aussie dollar, which hit a one-week high on the news.
With Rudd taking over the reins, after toppling Julia Gillard from the Labor Party leadership, just about three months ahead of scheduled elections there is speculation whether he will change the date of the September 14 polls.
Given this uncertainty, the Reserve Bank of Australia (RBA) is unlikely to cut interest rates in the near-term which could give a boost to the Aussie dollar, which is down more than 10 percent since the start of the year, experts said.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.