Home / Business / Aussie set for the biggest rise in 2019 after shock election wins Reuters

Aussie set for the biggest rise in 2019 after shock election wins Reuters

© Reuters. FILE PHOTO: Illustrative photo of Australian dollars

By Saikat Chatterjee

LONDON (Reuters) – The Australian Dollar rose on Monday and is heading for its biggest hike this year as investors cheered a shock-winning win by Prime Minister Scott Morrison's conservative coalition, even about mixed global equities essentially weighted risk appetite.

It was up 0.9% at $ 0.6926, bouncing from a $ 0.6865 receipt. It was briefly quoted as high as $ 0.6990 but retailers said it was a miss-hit and the actual transacted top was $ 0.6938.

"The surprise victory fuel rally that many expected the Labor Party to win but an Australian interest rate cut is still a lot on the cards in the coming months and it will weigh on the currency," said Esther Maria Reichelt, an FX strategist at Commerzbank (DE: ) in Frankfurt.

The left-wing party of the Labor Party had been tipped to win the federal election, beating Morrison's center-right liberal national coalition, which investors see as more business-friendly.

Tepid economic data, including rising unemployment, has raised expectations, the Australian central bank lowers interest rates as soon as July.

Elsewhere, the dollar stuck surprisingly on Monday and extended the gains from last week when it came to a US-China celebration war, greenbacks safe-haven appeal burned.

Positioning data gave a glimpse of the dollar's strength being tough, as investors have quietly trimmed some of their long positions in the US currency against both its developed and emerging market rivals.

Against a basket of its competitors the dollar stood at two weeks high above 98.

The pound recovered some losses after putting out its largest weekly decline for six months last week, by 0.2% higher at 1

, $ 2736 and 0.1% stronger against the euro of 87.62 pence.

Prime Minister Theresa May said she would make a "new bold offer" to British legislators in an attempt to get her three times defeated Brexit agreement through parliament before leaving her office.

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