Australian financial markets have shown scant regard to the news Malcolm Turnbull is challenging Prime Minister Tony Abbott for the leadership of the ruling Liberal Party.
The Australian dollar fell around 30 pips since news broke around 3.30 pm Sydney time, dropping to a session low of .7064.
Australia’s ASX 200 also finished off its session highs, closing at 5096.5, an increase of 0.5%. Earlier in the session it had been up more than 1%.
While both have fallen in the period since the news broke of the leadership challenge, it must be noted that declines in Chinese stocks – a major driving force of Australian financial market movements in recent weeks – may have also contributed to the slide.
That view is reflected in this tweet from Sean Callow, senior currency strategist at Westpac, who notes the curious correlation between China’s benchmark Shanghai Composite index and the AUD/USD exchange rate this afternoon.
AUD/USD looks to be far more fascinated with Shanghai equities than with Turnbull vs Abbott pic.twitter.com/FiA5CvSs2v
— Sean Callow (@seandcallow) September 14, 2015
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