Australia could have a new PM in a few hours; change likely to be AUD positive
- Firstly, Kevin Rudd is challenging Julia Gillard for leadership of ruling Labor Party.
- Vote is set for 7pm and Rudd is expected to win.
- BUT, there is no guarantee that the independents who had been supporting Gillard will also support Rudd.
- That means that we possibly could have a change of leadership party with Tony Abbot as new PM.
Logically any change shouldn’t really have any impact on the AUD but with the market already very short, the removal of a very unpopular PM might well initiate a mad scramble to cover shorts?