Cookies help us deliver our services. By using our services, you agree to our use of cookies.
Learn more Got it
Dakar 2017
Roboforex is an official sponsor
of "Starikovich-Heskes Team"
at the Dakar 2017
Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / The Australian Dollar is growing a little bit. Overview for 20.05.2016
Ask a question
Did not find the information you need? Ask your questions and get answers online!
Enter chat
Or enter your phone number in the form below and we will call you right away.
Call back

The Australian Dollar is growing a little bit. Overview for 20.05.2016

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

Dear reader!

Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.


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.