The AUD is balancing on the edge
21.07.2015
The AUD/USD pair remains at multi-year lows and the RBA comments are not helpful.
The Australian dollar is kept under pressure, although on Tuesday by the middle of the day, it even tries to stabilize. The current quotation in the AUD/USD pair is 0.7367. Everything is more or less even, the news flow is constrained, as it should be in the middle of summer, and the activity of the foreign exchange market is below average.
According to the minutes of the meeting of the Reserve Bank of Australia, further depreciation of the Australian dollar is needed. We spoke about it only the day before: RBA, whenever possible, will put pressure on the Aussie by verbal intervention. This is what is happening. The regulator believes that reduction in the cost of the AUD has a more discreet character than other traded currencies.
Inflation assessment remains very careful with the RBA - so much so that the regulator does not even publish figures. Demand for labour is present, and this factor is able to balance the level of unemployment and to cut it in a complementary manner. According to the RBA, wages are rising at a "historically minimal" rate.
The Greek crisis has virtually no effect on the Australian economy.
At the moment there are almost no detectable levels of support for the AUD/USD pair, which could keep the pair from decline. For now the trend to sell remains stable.
RoboForex Analytical Department
The Australian dollar is kept under pressure, although on Tuesday by the middle of the day, it even tries to stabilize. The current quotation in the AUD/USD pair is 0.7367. Everything is more or less even, the news flow is constrained, as it should be in the middle of summer, and the activity of the foreign exchange market is below average.
According to the minutes of the meeting of the Reserve Bank of Australia, further depreciation of the Australian dollar is needed. We spoke about it only the day before: RBA, whenever possible, will put pressure on the Aussie by verbal intervention. This is what is happening. The regulator believes that reduction in the cost of the AUD has a more discreet character than other traded currencies.
Inflation assessment remains very careful with the RBA - so much so that the regulator does not even publish figures. Demand for labour is present, and this factor is able to balance the level of unemployment and to cut it in a complementary manner. According to the RBA, wages are rising at a "historically minimal" rate.
The Greek crisis has virtually no effect on the Australian economy.
At the moment there are almost no detectable levels of support for the AUD/USD pair, which could keep the pair from decline. For now the trend to sell remains stable.
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.