The Australian Dollar continues falling. Overview for 04.05.2017

The AUD/USD par is very close to January lows on Thursday; the market is taking interest in the American currency.

On Thursday, the Australian Dollar continues falling against the USD. The current quote for the instrument is 0.7399.

There is nothing really critical happening to the Aussie – it’s all about fast growth in demand for the American currency. After the USA Fed announced yesterday that it intended to continue increasing the rate slowly this year despite some statistics that fell short of expectations, the market switched its attention to the USD.

The statistics from Australia was rather mixed. The HIA New Home Sales lost 1.1% m/m in March after adding 0.2% m/m in the previous month. It appears that right now the conditions on the real estate market are not very attractive for customers.

The comments made by Mr. Lowe, the Governor of the Reserve Bank of Australia, also counted against the Aussie. He said that right now the country’s economic system was less resistance to “stresses and disturbances” than earlier. However, the main problem lies within the system itself, so it must be solved slowly. Lowe said that the slow growth of salaries and heavy debts were the main reasons of the fact that the economy was getting less stable.

According to the RBA’s estimations, the banking system is in need of reform. A lot of attention in Lowe’s speech was paid to the real estate market: there were factors leading to expenses limitations due to “swollen” balances – households with heavy debts are very risky. However, neither the RBA, nor respective regulatory authorities aren’t going to interfere with the housing development sector yet.

RoboForex Analytical Department