AUD Going Slightly Up: Market Review, July 17, 2018

17.07.2018

The Australian dollar is slightly rising Tuesday against the greenback. The pair is currently trading at $0.7427. During the Asian session today, the traders were eagerly watching the minutes of the previous RBA meeting. The market was not disappointed with them, as they brought a good news: the interest rate may be raised in case the economic conditions get better, and this measure taken by the RBA is something we might expect in the midterm, while there are no reasons to do so in the short term.

The rest of the minutes was quite usual, with no surprises. Thus, the economic growth expected in 2018 and 2019 is around 3%, while the news for the labor market is positive, with the number of jobs rising. Meanwhile, the inflation growth is expected to be steady.

As for the Aussie rate, it is falling down a bit, the RBA says, but is still inside the 2-year strategic range. The Australian central bank used to say that if the Aussie gets too expensive it might slow down the GDP and CPI growth, but currently nothing of that sort is being said.

The RBA board consider the current conditions as valid for strengthening mortgage policy, although the mortgage rates have been going down for some time. The external risks are classified as moderate, the most unclear issue being the consumption depth. It seems like the Aussie is rising in the short term right because of those potential mortgage policy changes.

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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.