The British pound jumped more than 3 USc after May unexpectedly called a snap election for June 8.
As a result, investors eschewed risk-sensitive currencies such as the kiwi and Australian dollars.
Investors are now nervous the Reserve Bank of Australia will cut interest rates next week.
Wall Street rallies after US House speaker says he is willing to put revenues up for negotiation.
Australia's capital expenditure figures tomorrow are expected to show the economy might be starting to slow.
Markets shift focus to the US after European finance chiefs yesterday cut a deal to give Greece a sweeter deal.
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