The Australian dollar is once again testing the "bottom"
20.07.2015
The AUD/USD pair declines on Monday - commodity prices are still putting pressure on the Aussie.
The Australian dollar is still weak, and this is not news. A declining AUD satisfies the Reserve Bank of Australia and allows not adjusting interest rates without much need. However, the current market situation is alarming: AUD tests new lows. The current quotation in the AUD/USD pair is 0.7378, and the low of the session is 0.7326. This is the minimum value in the instrument since November 2008.
The reasons for the weakening are in general, on the surface. The sharp drop in iron ore prices and worsening forecasts for this parameter do not leave a drop of optimism for investors.
There is, however, a small glimmer of positivity. Morning Chinese data showed that the index of housing prices by the National Bureau of Statistics of China improved to -4.9% from 5.7%. Prices of real estate, both residential and commercial, start to grow when the overall economic situation is improving. Thus, the indicator can be considered a kind of barometer, objectively evaluating the effectiveness of fiscal efforts of the NSC.
All this, however, does not guarantee that China's economy and, as a consequence, Australia is about to come to a point of equilibrium. However, the emergence of some critical situation is not noticeable.
RoboForex Analytical Department
The Australian dollar is still weak, and this is not news. A declining AUD satisfies the Reserve Bank of Australia and allows not adjusting interest rates without much need. However, the current market situation is alarming: AUD tests new lows. The current quotation in the AUD/USD pair is 0.7378, and the low of the session is 0.7326. This is the minimum value in the instrument since November 2008.
The reasons for the weakening are in general, on the surface. The sharp drop in iron ore prices and worsening forecasts for this parameter do not leave a drop of optimism for investors.
There is, however, a small glimmer of positivity. Morning Chinese data showed that the index of housing prices by the National Bureau of Statistics of China improved to -4.9% from 5.7%. Prices of real estate, both residential and commercial, start to grow when the overall economic situation is improving. Thus, the indicator can be considered a kind of barometer, objectively evaluating the effectiveness of fiscal efforts of the NSC.
All this, however, does not guarantee that China's economy and, as a consequence, Australia is about to come to a point of equilibrium. However, the emergence of some critical situation is not noticeable.
RoboForex Analytical Department
Attention!
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.