Aussie Up After Australia Conservative Coalition's Surprise Election Victory

The Australian dollar gained ground against its major opponents in the Asian session on Monday, after Australia's ruling conservative party returned to power for a third term in the federal election, defying the exit polls that pointed to a Labor win.

Prime Minister Scott Morrison's Conservative coalition obtained 76 seats in the 151-seat House of Representatives. At least 76 seats are required to form a majority government.

Labor secured just 66 seats.

Labor leader Bill Shorten conceded the defeat and resigned following his party's surprise defeat.

Morrison had promised tax cuts and a tough immigration policy. The coalition plans to improve mental health services, social media content laws and drought recovery policies.

The aussie firmed to a weekly high of 1.0591 against the kiwi from Friday's closing value of 1.0534. The aussie is seen finding resistance around the 1.07 level.

The latest survey from BusinessNZ showed that the services sector in New Zealand continued to expand in April, albeit at a slower pace, with a Performance of Services Index score of 51.8.

That's down from 52.3 in March, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The aussie that ended last week's deals at 0.6866 against the greenback climbed to a 4-day high of 0.6930. The aussie is likely to challenge resistance around the 0.705 level, if it rallies again.

The aussie appreciated to a 6-day high of 76.34 against the yen, up from last week's closing quote of 75.56. The next key resistance for the aussie is likely seen around the 78.00 level.

Final data from the Ministry of Economy, Trade and Industry showed that Japan's industrial production declined less-than-estimated in March,.

Industrial production fell a seasonally adjusted 0.6 percent month-on-month in March, smaller than the 0.9 percent decrease initially estimated.

The Australian currency strengthened to a weekly high of 1.6098 against the euro and 4-day high of 0.9307 against the loonie from last week's closing values of 1.6239 and 0.9242, respectively. On the upside, 1.57 and 0.95 are likely seen as the next resistance levels for the aussie against the euro and the loonie, respectively.

Looking ahead, Eurozone current account data for March is due in the European session.

At 12:30 pm ET, the Bank of England Deputy Governor Ben Broadbent will speak at Imperial College Business School in London.

Federal Reserve Governor Richard Clarida will deliver a speech about the Federal Reserve's policy strategy, tools, and communication practices at an event hosted by the Federal Reserve Bank of New York at 1:05 pm ET.

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