Australia's leadership crisis is driving the nation's currency lower, according to Kyle Rodda, market analyst at IG Markets in Melbourne.
Australian dollar sinks as much as 0.5% to 0.7314, and bonds rally as Prime Minister Turnbull faces more blows to his leadership.
Funds initiated short positions as the crisis deepens, according to a trader.
Bonds gain, with the move starting after waves of buying in Dec. 2018 bill contracts, which fed through the curve.
10-year cash yield drops 2bps to 2.52%, while bank bill futures contacts push 2-3 ticks higher.