The Australian dollar rallied in Asian trade on Monday to a five-month high against the US dollar, expanding gains for the second straight session and on track towards 65 cents.

It comes after a historic win by the governing Labor Party, which bolsters the governments position towards growing global trade risks from Trumps tariffs.

The Price

The AUD/USD price rose 0.55% today to $0.6481, the highest since December 2024, with a session-low at $0.6445.

The pair rose 1% on Friday, marking the best daily profit since April 11 as US-China trade tensions calmed.

Aussie rose 0.75% against the greenback last week, marking the fourth weekly profit in a row as positive sentiment grips the global financial markets.

Australian Elections

The Australian federal elections netted a majority win for the governing Labor Party,which won between 85 and 899 seats in the 150-seat Parliament, with Prime Minister Albanese becoming the first to win two consecutive terms in nearly 20 years.

The Liberal Party, led by Peter Dutton, suffered a heavy defeat with only 36 seats, with Dutton himself losing his seat.

The results expand the majority of the Labor Party and give the government a strong hand in navigating the current turbulent economic conditions.

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