The Australian Dollar continues moving to the downside. Overview for 07.02.2017

On Tuesday, after responding positively to the RBA’s decisions at first, the AUD/USD pair continued trading downwards.

The Australian Dollar is falling against the USD on Tuesday morning. The current quote for the instrument is 0.7645.

Today, another meeting of the Reserve Bank of Australia was over, and according to its results, the monetary policy was left intact. Everything was just the way it had been expected. The interest rate remained at 1.5%, so it seems that the time to revised it hasn’t come yet.

In the comments, the RBA emphasized that the regulator was expecting the growth rate of the country’s GDP to improve in the fourth quarter this year, and add about 3% annually in the next couple of years. Probably, the market considered these statements to be too ambitious and, as a result, barely responded to them.

When it comes to the inflation, the RBA’s position remains conservative: the current reading of the CPI is classified as low due to the slowdown in the salaries growth rate. The target for the CPI is 2-3% and this year the regulator is waiting for the inflation pressure to increase.

As for the employment market, it’s rather neutral: the sector continues stabilization process. Last quarter, the Full Time Employment Changes was in the black, and, the tendency is expected to gain momentum by the second quarter 2017.

The Aussie didn’t seem to find any reasons for strengthening in the RBA’s statements, once the AUD/USD bears turned back to sales after a short pause.

RoboForex Analytical Department