(1) During election, if there is no clear winner - Currency will weaken for a FEW DAYS (1-2days).
For example, on the 20/08/10, AUD/USD falls (at that time around 0.89) because there was an indication that there was no clear winner. The no. of seats the Labor won was around 70.
The no. of seats the Liberal won was around 70.
Result: no majority government is formed >> Govt will have harder time to pass a policy.
In simple terms, no strong or appointed leader >> weak country.
Good for short term trading.
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