Australian Dollar recovers broadly today as Treasurer Scott Morrison becomes the next Prime Minister, winning a three way race with Foreign Minister Julie Bishop and former Home Affairs Minister Peter Dutton after Malcolm Turnbull was ousted. That’s the sixth change in prime ministership in a less than a decade.
ScoMo, as Morrison has come to be known, is seen as the most market-friendly option. In particular, as under him as Treasurer, there was substantial improvement in budget balance in Australia.
However, the rebound is limited as the markets are probably looking through to next year’s general election already. Bigger uncertainty lies ahead as there is a good chance of a Labor win while results in a change of government and policy directions.
