The Australian Dollar is under pressure again. Overview for 17.10.2017

17.10.2017

The AUD/USD pair is falling after the RBA published its monetary policy meeting minutes.

The Australian Dollar is being sold against the USD once again after the RBA told that there might be more risks for the country’s economy in case the Aussie remained expensive. The current quote for the instrument is 0.7848. Investors started has been selling the pair since yesterday.

It’s quite interesting how the Australian Dollar responded to the RBA comments. On the one hand, the regulator often says that the growth rate of the Australian economy will slow down if the Aussie continues to rise. At a certain point, investors even built up some kind of tolerance to such comments. On the other hand, the national currency rate may really become more important by the time when the economic diversification process is about to finish. This might be the reason why the regulator draws attention to the Aussie’s behavior and its possible consequences over and over again.

Apart from this, the October Monetary Policy Meeting Minutes say that the country’s economy is improving as expected and its expansion in the second quarter matched the regulator’s targets. In the years to come, the economy will be well supported by the infrastructure expenses. As a result, it will boost the inflation and other related components.

According to the RBA’s estimations, the employment market is looking more and more stable and the number of new jobs is even excessive. At the same time, the market yet has the room to improve and the salary growth is still behind the target. The real estate market provides very complicated signals. In Sydney and Melbourne, it fell a bit, but it neutral countrywide.

Turning to the national currency rate, we should remind that according to the RBA, the Aussie got stronger mostly because of the weak USD. If it’s true, then the market conditions may change significantly by the end of the year.

 

RoboForex Analytical Department

 

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