On Friday morning, the AUD/USD pair is getting more expensive in response to comments of the RBA representative about the inflation.
The Australian Dollar is growing against the USD on Friday. The current quote for the pair is 0.7238.
This morning, the representative of the Reserve Bank of Australia, Mr. Edwards, noticed that right now it would be better to focus on work with budget parameters: systematically reduce the budget deficit and cut some part of its expenses in order to avoid the problem.
According to his words, it’s too early to talk about the inflation and revise targets of the CPI. Inflationary forecasts themselves haven’t changed recently, so there’s no need in such discussion.
At the same time, he emphasized that the authorities still have the tool for “fighting the shocks”. It seem that he meant slowdown in the Chinese economy considering the latest statistics and potential for tightening monetary conditions in the USA.
The Australian Dollar is quite calm in its response to such rhetoric. For quite a long time, it’s been resistant to opinions of the RBA, which thinks that the national currency is too expensive. This is why all similar opinions cause a rather poor reaction from investors. At the same time, any references to the regulator’s readiness to act if necessary always cheers the market players up.
Right now, the AUD/USD is moving close to the downside border of the mid-term trading range, and there is little potential for a fast growth.
RoboForex Analytical Department
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