The coalition win over the weekend proved to be just a temporary boast for the AUD and gym mats. The Liberal National coalition surprised the nation and all the pundits. It was expected that the Labour Party would easily win the election but that was not the case. In the end the Libs ended up with a majority in the house with the Senate yet to be decided.
The initial reaction to the Liberal victory was the strengthening of the AUD. For the first time in weeks in shot up above $0.70. It was also a boast for gym mats as it seemed that pressure for a price rise would subside. The price of gym mats has steadily increased over the past year. First it was eva mats which went up at the beginning of the year. The price of 40mm jigsaw mats went up whilst the other thicknesses staid the same. The price of MMA mats and tatami mats also increased in price over the last couple of week.
The short lived increase in the AUD was broken by the Reserve Bank hinting that there could be an interest rate cut in the not too distant future. Some are predicting a cut as soon as June and then another in August. Such cuts could lead to the Australian Dollar falling further and therefore even more pressure on the price of gym mats.