AUDUSD is down again amid investors’ poor attitude to risks.
On Wednesday afternoon, the Australian Dollar is falling against the USD. The current quote for the instrument is 0.6075.
On one hand, it’s obvious that market players’ interest in global risks is decreasing again, thus putting pressure on traded currencies. On the other hand, The RBA’s expectations relating to the economic outlook are very gloomy and that’s also not too good for the Aussie.
The statistics published in the morning showed that the AIG Manufacturing Index in Australia went from 44.3 points in February to 53.7 points in March. It’s pretty good and may be connected to the fact that the Chinese manufacturing sector is back to almost its full capacity.
The Building Approvals added 19.9% m/m in February after losing 15.3% m/m the month before and against the expected reading of +3.1% m/m. The number is quite surprising because the economic activity in the country is rather low and the future outlook is also not too optimistic. However, the growth may have been caused by low interest rates – this may really straighten things out.
Apart from this, the Reserve Bank of Australia released its previous Monetary Policy Meeting Minutes, which said that the country’s economy might significantly shrink not only in the first six months of 2020 but in the third or even fourth quarters as well. They believe that after the coronavirus pandemic starts dying down, the Australian economy will recover. However, timescales are quite vague.
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.