The AUD will try to push off from the "bottom"
18.12.2014
After the Reserve Bank of Australia more than once over the past few months uttered the phrase "the Australian dollar is too expensive", the markets finally believed that the Aussie will not be allowed to strengthen until the economy itself "gropes" full points of support.
Yesterday a report was released by Westpac which showed that the index of leading indicators in Australia in November fell by 0.1%. This indicates weak prospects for growth in the local economy. With that Westpac and the Melbourne Institute emphasize that November was the tenth "minor" month in a row for the index, which remains below trend levels.
This, in turn, indicates that Australia's GDP can go below forecast estimates for the fourth quarter of 2014 and the first quarter of 2015. Private demand may also fall under pressure.
In general, short-term prospects for the AUD/USD pair will depend on how far investors will go in the estimates of yesterday's meeting the US Federal Reserve. In the medium-term the pair remains under pressure.
RoboForex Analytical Department
Yesterday a report was released by Westpac which showed that the index of leading indicators in Australia in November fell by 0.1%. This indicates weak prospects for growth in the local economy. With that Westpac and the Melbourne Institute emphasize that November was the tenth "minor" month in a row for the index, which remains below trend levels.
This, in turn, indicates that Australia's GDP can go below forecast estimates for the fourth quarter of 2014 and the first quarter of 2015. Private demand may also fall under pressure.
In general, short-term prospects for the AUD/USD pair will depend on how far investors will go in the estimates of yesterday's meeting the US Federal Reserve. In the medium-term the pair remains under pressure.
RoboForex Analytical Department
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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.