The Australian Dollar is rising on Tuesday. Overview for 05.09.2017

The AUD/USD pair is trading upwards being influenced by good news.

The Australian Dollar is getting more expensive against the USD. the current quote for the instrument is 0.7961.

Today, another meeting of the Reserve Bank of Australia took place. During the meeting, it was decided to leave the key rate intact at 1.5%. In the comments, the RBA emphasized that the current rate value was in full accordance with the economic situation and the GDP and inflation targets. However, after the previous meeting, the regulator told the same. The latest data, according to the RBA, indicates a slow growth of the economy, although in different sectors the situation may vary. For example, the real estate sector is looking rather mixed, while the labor market is growing.

There were some interesting words about the Aussie behavior. Earlier they said that the expensive national currency was a real problem for Australia. Right now, the RBA still thinks that the expensive Aussie prevents the GDP and the employment sector for improving, but at the same time helps to keep the inflation under control. As a rule, the Australian Dollar barely responds to such comments, because they have no influence on the monetary policy.

So, what may force the RBA change the key rate from the record-low value? On the one hand, the consumer sentiment has to improve, because businesses develop and invest into manufacturing processes. On the other hand, the labor market is also improving. However, the population barely spends money and looks ahead “with a pinch of salt”, and that’s the biggest problem. Probably, the consumer sentiment may improve due to the slow increase of salaries and wages. The first signal to this increase may be the expansion of the household spending. So far, this indicator decreases.

RoboForex Analytical Department