On Wednesday morning, AUDUSD is still retreating; investors are in favor of the American currency.
The Australian Dollar is falling against the USD in the middle of the week. The current quote for the instrument is 0.6844.
Yesterday, the Reserve Bank of Australia released its December Meeting Minutes. Policymakers came up with an opinion that it would be reasonable to review their economic outlook as early as during the regulator’s meeting in February 2020. The RBA has opportunities to use the necessary tools to give a boost to the country’s economy in case the labor market parameters get worse, but there is no need to do it so far. Apparently, this refers to the interest rate revision. According to the regulator, one should expect an extended period of low interest rates due to both global and domestic factors.
The RBA is a bit concerned about the slow growth rate of household incomes. However, if we take a look at rather cautious numbers in employment, we can see that there is no stress here, it’s just a low-key tendency.
As for the economic outlook, consumers remain very careful and cautious: economic issues are covered in the media in a quite “gloomy” way. However, people’s attitude to their own finance is pretty smooth, and that’s a good thing.
Overall, everything that was in the report was quite expected, because the key thing is that the RBA is ready to cut the rate if necessary. Probably, the conditions for that may appear at the end of the first quarter of 2020.
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.