The aussie is buoyed after a friendlier election result over the weekend

WCRS 20-05

The aussie is the main mover to start the new week after the election over the weekend showed that the incumbent government is set to secure a majority, allowing for a calmer period of politics in the country. That also means that plans for the tax cuts should go uninterrupted and that's a fiscal boost for the currency as well.

As such, the aussie is leading gains following a gap higher at the open and the more optimistic sentiment is also helped by risk assets holding up well to begin the week. US equity futures are up by about 0.4% while Treasury yields are also a tad higher, helping to add to the slight positive tones in markets so far.

The kiwi is also higher as a result while the loonie is underpinned on the back of higher oil prices, after the OPEC+ JMMC meeting over the weekend hinted at a further extension of the current output cut deal. It looks like that is very much a given and an expectation ahead of next month's OPEC+ meeting, so that should keep oil prices bid until then.

Other than that, the rest of the major currencies bloc are showing little changes against the dollar as we look to begin European trading. The yen is a little weaker but it's nothing overwhelming at this point in time.

Market participants will have to deal with the ebb and flow again today, as there won't be much on the economic calendar to really shake things up. As such, just look out for more potential US-China trade headlines if anything else and pay attention to the mood in risk assets for further clues on how currencies will move today.