The AUD/USD pair is falling after comments from the head of the RBA.
The AUD/USD pair is trading downwards on Tuesday afternoon. The current quote for the instrument is 0.7159.
According to Glenn Stevens, the head of the Reserve Bank of Australia, the current inflation in the country is low, under the RBA’s target, but the regulator doesn’t consider it necessary to reduce the target. The target for the CPI may be considered as a particular landmark, but one should better look at it in the long-term. The inflation target for Australia is 2%, the same as for other developed countries.
In the RBA’s opinion, the growth of the GDP is not the worst, and the government will have to work hard to restore the budget and make it look good. This process may take several years. The same several years may take the Australian government to estimate the moves of China relating to transitional development model.
Mr. Stevens said nothing that may seem too sad, but after his speech, the AUD/USD pair fell to this February’s lows. Judging by the investors’ sentiment, there is more to come is sales, and the instrument may well reach 0.7100, the way it happened last winter.
RoboForex Analytical Department
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