FX.co ★ Australian Dollar Rises as Albanese Secures Second Term

The Australian dollar surged past the $0.645 mark on Monday, achieving its highest value in close to five months. This upward trend follows Prime Minister Anthony Albanese's successful bid for a second consecutive three-year term in Saturday’s federal election. Prime Minister Albanese has committed to a government characterized by discipline and order, with a focus on alleviating cost-of-living pressures and managing global trade tensions. He also reaffirmed his commitments to boost renewable energy, reduce taxes, address the housing crisis, and invest in the country's overburdened healthcare system. On the economic front, the Reserve Bank of Australia is expected to reduce its benchmark interest rate by 25 basis points, bringing it to 3.85% in May. Market predictions suggest an additional decrease to 2.85% by year-end, as inflation eases and global growth outlooks weaken. Simultaneously, investors are keeping a watchful eye on the progress of U.S.-China trade relations. U.S. President Donald Trump mentioned on Sunday that China is interested in reaching an agreement, although details and timelines remain unspecified.