The AUD/USD pair strengthened near 0.6450 during the Asian session on Monday (05/05). The Australian dollar (USD) strengthened against the greenback after Australian Prime Minister Anthony Albanese won a second three-year term in the 2025 Federal Election, making a big gain in Saturday's Federal Election results.

Labor Party leader and Premier Albanese claimed a majority in parliament on Saturday, with more than 45% of the vote counted. Albanese became the first leader in decades to secure a second term, defeating opposition leader Peter Dutton from the center-right Liberal-National coalition. Expectations of policy continuity under Albanese after his re-election to a second term could boost the Australian currency in the near term.

Attention will turn to a possible improvement in US-China trade relations. China's Commerce Ministry said on Friday that Beijing is considering an offer from the US to engage in trade negotiations, a week after US President Donald Trump claimed talks were already underway. However, signs of escalation between the world's two largest economies could weigh on China's proxy, as China is Australia's main trading partner.

Data released by the US Bureau of Labor Statistics (BLS) on Friday showed that Nonfarm Payrolls (NFP) in the United States (US) rose by 177,000 in April. This followed a 185,000 increase (revised from 228,000) seen in March and was above market consensus of 130,000.

Meanwhile, the Unemployment Rate remained unchanged at 4.2% in April, as expected, while Average Hourly Earnings held steady at 3.8% YoY in the same reporting period. The US Dollar (USD) remained weak despite the positive US NFP report, as traders were concerned about China tariff headlines. On Monday, traders will be looking at the US ISM Services Purchasing Managers' Index (PMI) for April for fresh impetus. (Newsmaker23)

Source: FXstreet