LABOR veteran Simon Crean's dramatic decision to call for a leadership spill pushed the Australian dollar down in the immediate aftermath of his announcement.
The currency was trading at $1.0373 at 5pm AEDT, down from $US1.0391 at 1pm when Regional Affairs Minister Simon Crean called for the spill.
Markets expect ongoing political uncertainty around Julia Gillard's prime ministership, even after Kevin Rudd elected not to nominate for a caucus ballot called by Ms Gillard.
"Markets are watching in fascination more than anything else,” JPMorgan's Ben Jarman said.
Commonwealth Bank currency strategist Peter Dragicevich said the rise in the value of the Japanese yen against the US dollar was a factor in the dollar’s move today.
“We've seen the yen strengthen over that same period so its just coincidental, we wouldn't expect (the leadership spill) to have any bearing,” Mr Dragicevich said.
