Excerpt from: Forex News
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| August 23, 2010 | | Aussie not really affected in currency trading | There is some concern that the Australian dollar may be affected in forex trading by the expectation of a hung parliament. A clear majority does not appear to be emerging with the primary vote almost counted.
However, even so, it does not appear that a hung parliament would have much effect on the Aussie in currency trading on the FX market. Action Forex reports on expectations for fiscal policy:
In our opinion, the overall impact on the financial should be limited.
Concerning fiscal policies, both parties promise a return to a budget
surplus by FY13, elimination of net debts by 2020 and a return to a
structural budget surplus of 1% of GDP in the long-term. On macro and
monetary fronts, both support independence of the RBA, a floating
exchange rate. While the newly elected Green Party member and other
independent MPs will determine which party can form a government, they
should not be able to influence policymaking.
| Topic Tags: Aussie currency trading, Australia, Australian dollar, currency trading, forex trading, FX market, hung parliament | |
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