Australia & New Zealand Economics

Australia & New Zealand Economics Weekly

24 August, 2018

Is the dollar pondering a Labor government?

This week’s political chaos has increased the downside risks to the Australian dollar. Although the markets welcomed the news that Scott Morrison has replaced Malcolm Turnbull as Australia’s Prime Minister, the bigger question is who will be in the top job after the next election? We suspect the Australian dollar would weaken some way if the recent bickering within the government contributed to Labor winning the next election.

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