The Australian dollar fell overnight as political crisis continued in Australia. The crisis started two years ago when the current Australian prime minister, Malcom Turnbull survived a leadership challenge from one of his ministers, Peter Dutton.
Early today, three more ministers in the government decided to resign and move to the backbench as Dutton prepares to challenge the prime minister again. This brings the total number of resignations from Turnbull’s cabinet to 13, making it difficult for the prime minister to continue serving. Earlier today, Peter Dutton asked the prime minister to resign because he did not have the majority of the support.
This will bring a dramatic end to Turnbull’s premiership and usher Australia to a new direction. In the past ten years, the country has had five prime ministers. In 2007, Kevin Rudd became the prime minister after deposing John Howard. In 2010, he was deposed by Julia Gillard, who was later deposed by Kevin Rudd in 2013. Tony Abbot took power in 2013 and was deposed by Malcom Turnbull in 2015.
Starting from Tuesday last week, the Australian dollar has been rising against the US dollar. It rose from 0.7200 and reached a weekly high of 0.7380. This rise assumed that the Turnbull’s government would survive. As the problems increased and it became uncertain about his tenure, the AUD fell and reached 0.7290. As the pair declined, it formed a symmetrical triangle pattern as shown below. As the crisis continues, there is a likelihood that the pair will continue to decline.
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