The AUD is ready to update its lows
31.03.2015
The AUD/USD pair continues the earlier started fall and is about to update the local minimums on the fears of another rate cut.
On Tuesday, the Australian dollar continues to fall. Investors seem to lay more and more significant expectations on the instrument, betting on the imminent interest rate cut by the Reserve Bank of Australia.
At the moment, the RBA rate remains at 2.50% per annum, but next week a meeting of the regulator is scheduled, during which the RBA will likely be forced to lower the rate further. The market believes that the fair rate level should be 2.00%, taking into account the fall in iron ore prices.
Previously it was assumed that for now the RBA would not touch the rate and monitor the situation. However, investments in the mining sector are reduced, while prices for iron ore are falling. In addition, the drop in oil prices does not add to the Australian economy optimism.
For the AUD/USD pair a significant mark of support is 0.7570. After breaking through this level, the instrument will go to test a new low.
RoboForex Analytical Department
On Tuesday, the Australian dollar continues to fall. Investors seem to lay more and more significant expectations on the instrument, betting on the imminent interest rate cut by the Reserve Bank of Australia.
At the moment, the RBA rate remains at 2.50% per annum, but next week a meeting of the regulator is scheduled, during which the RBA will likely be forced to lower the rate further. The market believes that the fair rate level should be 2.00%, taking into account the fall in iron ore prices.
Previously it was assumed that for now the RBA would not touch the rate and monitor the situation. However, investments in the mining sector are reduced, while prices for iron ore are falling. In addition, the drop in oil prices does not add to the Australian economy optimism.
For the AUD/USD pair a significant mark of support is 0.7570. After breaking through this level, the instrument will go to test a new low.
RoboForex Analytical Department
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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.