Research Team at Deutsche Bank, suggests that the most significant event in Australia this week was the announcement that the Parliament will be recalled on 18 April and the Federal Budget will be brought forward to 3 May (from 10 May). Key Quotes “The recalling of the Senate sets in place a range of Parliamentary and Constitutional maneuvering (of which the bringing forward of the Budget is part). At this stage it appears the likely outcome of this maneuvering (assuming the Senate fails to pass a Government Bill related to the construction industry) will be the calling of an election on or before 11 May for the House of Representatives and the whole Senate (as opposed to half of the Senate). The election itself will likely be on 2 July. We have typically argued that elections in Australia have little impact on markets (both sides of politics support, for example, the RBA’s 2-3% inflation target and returning the Budget to balance, although on the later the timing and nature of any such return will, of course, differ). We also think – and have argued in the past – that ‘confidence’ impacts related to elections or leadership changes etc have almost no impact on underlying trends in the real economy.” For more information, read our latest forex news.