AUDUSD keeps rebounding; the RBA is consistent in its decisions.
The Australian Dollar is rising against the USD for the second trading session in a row. The current quote for the instrument is 0.7094.
The Reserve Bank of Australia had another meeting today and decided to keep its monetary policy intact. The benchmark interest rate remained at 0.10%.
In the comments that followed, the RBA Governor said that the Australian economy was recovering after the outbreak of the previous COVID-19 strain, while the investment forecasts significantly improved. The household consumption was also recovering. The Australian economy is expected to get back to its pre-delta strain trajectory in the first half of 2022.
Leading indicators show that the employment sector is recovering quite steadily and salaries are expected to continue increasing.
As for the regulator’s further fiscal plans, the RNA is going to keep its accommodative monetary policy. The regulator won’t raise the rate until inflation reaches the range of 2-3% and fixes inside it. According to the RBA’s forecasts, the indicator may reach 2.5% by 2023.
As a matter of fact, not everything is so simple here. First of all, the US Fed will surely tighten its monetary policy within the next 6 months and other global regulators, willing or not, are believed to follow. Secondly, the Reserve Bank of New Zealand has already raised the rate twice and the country’s economy is doing fine. Such external pressure may force the Australian regulator to raise the rate much earlier than mid-2023.
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.