7:51 PM
The AUD will wait for "catalysts"
FXTM Online Analysis Department. www.fxtmonline.com
Investors in the AUD/USD pair are ready for active movement in the next few days - ahead is the RBA meeting and the rate decision.
The Australian dollar tested record lows last week is once again ready for active movements. The second week of the April promises to be "active": ahead is the meeting of the Reserve Bank of Australia, and there is every reason to believe that the regulator will still move for another decrease in interest rates.
Iron ore prices continue to "sink", and this fact is able to put additional pressure on the RBA. The rate decision will be known on April 7 in the morning, and at the same time an accompanying statement will be published. However, the following technical point should be taken into account: right now the position of the US dollar is not too confident, and this may well have a "cushioning effect" in the AUD/USD pair, softening the potential sales. However, expectations of a rate cut are already included in the current market price, and the sale may well be shallow.
On the whole, the economic situation in Australia is not undergoing any significant changes. After the outflow of investment from the country's mining sector - which happened quite naturally, given the policy of the authorities - the leading macroeconomic indicators have deteriorated. That would have been temporary, but the external background intervened. In connection with a number of independent factors of most of Australia's economy it is not yet able to embark on a sustainable recovery.
The Australian dollar tested record lows last week is once again ready for active movements. The second week of the April promises to be "active": ahead is the meeting of the Reserve Bank of Australia, and there is every reason to believe that the regulator will still move for another decrease in interest rates.
Iron ore prices continue to "sink", and this fact is able to put additional pressure on the RBA. The rate decision will be known on April 7 in the morning, and at the same time an accompanying statement will be published. However, the following technical point should be taken into account: right now the position of the US dollar is not too confident, and this may well have a "cushioning effect" in the AUD/USD pair, softening the potential sales. However, expectations of a rate cut are already included in the current market price, and the sale may well be shallow.
On the whole, the economic situation in Australia is not undergoing any significant changes. After the outflow of investment from the country's mining sector - which happened quite naturally, given the policy of the authorities - the leading macroeconomic indicators have deteriorated. That would have been temporary, but the external background intervened. In connection with a number of independent factors of most of Australia's economy it is not yet able to embark on a sustainable recovery.
FXTM Online Analysis Department. www.fxtmonline.com
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