On Friday, the AUD/USD pair is trading to the downside after revised forecasts form the RBA.
It seemed that the Australian Dollar stabilized over the last couple of days, but today the sales of the pair continue with renewed vigor. The current quote for the instrument is 0.7366.
The reason for this was revised forecasts from the Reserve Bank of Australia. We are talking about inflation expectations, which got much worse. Now, forecasts for 2016 are expecting the inflation at 1-2%, by the middle of 2018 – 1.5-2.5%. Previous calculations expected the CPI in Australia to increase up to 2-3% by the third quarter of 2018.
This uncertainty moment makes the RBA forecasts a bit questionable. The regulator itself tells about the weakness of inflationary pressure and possible risks relating to it. Thus, expectations as so different. Nevertheless, one should be quite careful about such forecasts as they are of a very averaged nature.
Today’s statistics couldn’t fix investors’ sentiments. The business activity index in the construction sector of Australia in April increased up to 50.5 points against 45.2 points in March. This is a good sign – short-term sentiments got better, and the sector may provide support to the Australian GDP.
RoboForex Analytical Department
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