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Incumbent Prime Minister Scott Morrison conceded defeat Saturday evening. His LNP coalition lost 20 seats, including several high profile MPs. Australian Treasurer Josh Frydenberg lost his seat, a seat held by the conservatives for generations; for 120+ years up until Saturday. Frydenberg lost to an independent.
Labor leader Anthony Albanese will form a new Australian government. Its not clear at this stage (counting continues) if Labor will form a majority or minority government.
Labor has won 72 seats but needs 76 to govern in majority, otherwise it’ll form a minority, relying on the Greens &/or independents to pass its legislation. Labor, too, was hit by the independent vote, it lost a high-profile MP.
The Greens are on course to win up to 4 seats.
The independents have won 11 seats.
The new government is now faced with the massive task of reigning in massive federal debt, which surged in the past few years – the pandemic response played a major role in this. Its also going to be faced with the beginning of the Reserve Bank of Australia interest rate hiking cycle. The RBA lifted the cash rate at its May meeting, for the first time in more than 11 years, with more to come in June and after.
I suspect not a lot of AUD impact on Monday, Australian politics have not been a focus for it. On Friday US time:
- There was a steady bid in the kiwi. It along with the Australian dollar both tested the Asian lows and held, then moved up.