The AUD/USD pair strengthened again, despite the tense external background and China's actions.
The Australian dollar is feeling good this December. Daily trading volumes of the AUD/USD pair this month are quite noticeable, but there is also a lot of news. The current price of the instrument it 0.7244.
In the morning, the commentary from the Reserve Bank of Australia was optimistic. According to its comments, in the next two years the economy will gradually strengthen, and there are signs of stabilization and improvement in the employment market. From the interesting – the RBA sees support to the economy and businesses, from the non-mining sectors. If there is even a little bit similarity to the real state of affairs, we can start talking about the victory over Australia's commodity dependence. The five years road has been challenging but productive, since the first shoots of a diversified economy are already being seen.
Among the risks, the RBA noted weak inflation prospects, and this factor can trigger a further easing of monetary conditions in the country. It's not news that the regulator previously made no secret of its intentions to act if the situation requires. Currencies have long not reacted to such verbal intervention.
Speaking of currency. The RBA believe - and not for the first day - that the Aussie is adjusted by changes in commodity prices. In many ways it is, especially when you look at annual and monthly charts. However, on shorter timeframes more emotional reactions are seen.
It seems that in the coming days we expect fairly quiet trading. The most interesting things will begin tomorrow evening after the Fed communicates its decision on rates and comments on it.
RoboForex Analytical Department
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