The AUD/USD pair is trading to the upside on Tuesday morning; the Aussie doesn’t react to the RBA meeting minutes and the forecasts relating to China.
On Tuesday morning, the Australian Dollar is getting a little bit expensive against the USD. The current quote for the instrument is 0.7599; it is still trading close to its two months’ highs, but the ascending impulse is getting weaker.
The RBA meeting minutes that were published today, the regulator said that the slow growth of the GDP in the first quarter of 2017 didn’t allow to think about changing the interest rate so far. Despite the fact that the amount of investments into the mining industry stopped reducing, there are a lot of other subtle aspects in the country’s economy, which prevent the GDP from growing steadily
Among these aspects, the regulator mentioned slow growth of salaries, which automatically leads to the population’s low incomes and, as a result, less money spent in retail chains. Although the leading indicator on the employment is positive, no one should expect any significant growth of salaries in the nearest future.
The average forecast on the Australian GDP for the next several years is 3%.
The Aussie doesn’t respond to the restrained language of the report just as it pays no attention to the conclusion from the Fitch agency. According to it, in 2018 and 2019 the Chinese GDP growth won’t exceed 6% or, most likely, will be even lower. The agency believes that the main problem of China lies in the fact that it getting more and more complicated to fuel growth of the economy and the QE program effect is reducing. According to the agency’s expectations, this year the Chinese economy may expand by 6.5%, by will decrease by 5.8% by 2019.
The Aussie is usually rather sensitive to any negative information relating to China, but this time its reactions is neutral.
RoboForex Analytical Department