The Australian dollar is lower after a stunning federal election cliffhanger put the prospect of another hung parliament on the cards.
At 0700 AEST, the local unit was trading at 74.48 US cents, down from 74.56 cents on Friday.
The nation’s political future remains in limbo and Westpac strategist Imre Speizer says the fate of Prime Minister Malcolm Turnbull’s government may not be known for days following Saturday’s inconclusive poll result.
“Counting will begin again on Tuesday after all absentee, interstate, postal and other declaration votes are reconciled, sorted and packaged,” he said.
“The possibility of a hung parliament – with possible ratings outlook implications – suggests that the Australian dollar should trade on the back foot.”
He tipped the Reserve Bank to reinstate an easing bias while leaving rates on hold on Tuesday, due to uncertainty triggered by Britain’s vote to leave the European Union and a deteriorating global economic outlook.
This should also weigh on the Aussie, Speizer said.
