The Australian Dollar is retreating. Overview for 06.12.2016
06.12.2016
The AUD/USD pair is trading downwards after another meeting of the RBA.
The Australian Dollar is being sold against the USD on Tuesday afternoon. The current quote for the instrument is 0.7444.
So, the December meeting of the RBA finished this morning. Just as expected, the rate remained unchanged at 1.5%. Right now, it’s too early to revise the indicator because the previous decrease hasn’t produced any observable effects so far. In its comments, the Australian regulator mentioned that it didn’t exclude a possibility of a particular slowdown in economic growth at the end of the year – but it’s just a pause before a new shoot forward. The real estate sector stabilized, or even improved in some aspects; in some cases, there might be seen a rise in housing prices, which is also positive. The labor market is still providing some mixed signals, but in the short-term, the employment is improving and this tendency may transform into a long-term one later.
When it comes to the inflation in Australia, the RBA estimates it as very low at the moment and doesn’t expect it to increase. The current high exchange rate of the Aussie can make the transition period in the country’s economy more difficult.
Now, after the regulator’s new management mentioned the AUD and its influence on the country’s economy in its comments, we can say that the rhetoric of Mr. Stevens, ex-Governor of the RBA, is back. It appears that Mr. Lowe, the current Governor of the Australian Central Bank, reached the same point of the monetary policy stability as Stevens did in his time.
The neutral tone of the RBA’s comments put some more pressure on the Aussie. In the morning, large banks published their prediction relating to the country’s GDP, which indicated their expectations of a slowdown in economic growth.
RoboForex Analytical Department
The Australian Dollar is being sold against the USD on Tuesday afternoon. The current quote for the instrument is 0.7444.
So, the December meeting of the RBA finished this morning. Just as expected, the rate remained unchanged at 1.5%. Right now, it’s too early to revise the indicator because the previous decrease hasn’t produced any observable effects so far. In its comments, the Australian regulator mentioned that it didn’t exclude a possibility of a particular slowdown in economic growth at the end of the year – but it’s just a pause before a new shoot forward. The real estate sector stabilized, or even improved in some aspects; in some cases, there might be seen a rise in housing prices, which is also positive. The labor market is still providing some mixed signals, but in the short-term, the employment is improving and this tendency may transform into a long-term one later.
When it comes to the inflation in Australia, the RBA estimates it as very low at the moment and doesn’t expect it to increase. The current high exchange rate of the Aussie can make the transition period in the country’s economy more difficult.
Now, after the regulator’s new management mentioned the AUD and its influence on the country’s economy in its comments, we can say that the rhetoric of Mr. Stevens, ex-Governor of the RBA, is back. It appears that Mr. Lowe, the current Governor of the Australian Central Bank, reached the same point of the monetary policy stability as Stevens did in his time.
The neutral tone of the RBA’s comments put some more pressure on the Aussie. In the morning, large banks published their prediction relating to the country’s GDP, which indicated their expectations of a slowdown in economic growth.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.