The AUD/USD pair is trading to the upside under the influence of the RBA’s comments on the interest rate.
The Australian Dollar has been slowly growing against the USD for the third day in a row. The current quote for the instrument is 0.7717.
today, the RBA’s Governor commented on the monetary policy, that’s why it attracted attention from market players. Mr. Lowe said that the current readings of the CB’s interest rates matched the regulator’s targets for the GDP and the CPI. It means that the regulator is unlikely to decrease the rate sharply in the nearest future. For the Aussie, it’s a good signal.
Lowe also said that the economic rebound in the country was 90% complete. Over the several complicated past years, the government had been diversifying the Australian economy, and trying to decrease resources industry dependency and turn to markets. However, it appears that the remaining 10% will be the longest and most difficult.
According to the RBA, the employment market is feeling fine, the unemployment rate remains the same, but may yet decrease a bit. This is another good signal, but it doesn’t exceed the negative comment about the Households vulnerability, which is close to “unacceptable” level.
As for China and close trade and economic cooperation with it, the RBA is very concerned that it’s very risky, although right now everyone can see a growing momentum in the Chinese economy.
Overall, it seems that the RBA’s sentiments are rather positive. There are some problems of course, but, for instance, the strong Aussie is no longer one of them. In its turn, this may be a signal that the country’s dependency on the export is decreasing, which is also good.
RoboForex Analytical Department