CBA has released an interesting note today examining the history of elections and their rather short-term effects on consumer confidence, the dollar and the stock market. Confidence levels generally lifted modestly following Federal election outcomes before other issues took greater prominence. Generally the short-term election boost to confidence lasted only a couple of months. The Australian dollar has appreciated against the greenback following each of the last six Federal Elections, including the 2007 and 1996 polls that involved changes of government. On average, at the last five elections, the Australian dollar appreciated 2.7% in the three weeks after the poll date. In the period from the calling of the 2013 election up until poll day, the Aussie dollar rose by 3.1% - from US89.09c to US91.80c. But over the three weeks up to poll day, the Aussie was largely unchanged - modestly softer than the performance of the sharemarket. (VIEW LINK)
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