The Australian dollar is not shy of lows

The Australian dollar 

The AUD/USD pair remains under heavy selling pressure, despite the mixed statistics.

The Australian dollar is still a considerable interest of the stock exchange "bears." By Thursday, the AUD/USD pair retreated to 0.7590, and this is an absolute record low. The AUD was never so cheap, and this is one more example of an effectively functioning and almost imperceptible verbal intervention of the RBA.

In the morning data came out, which shows that the rate of inflation in Australia, according to calculations by TD Securities, rose in March to 0.4% m/m against zero a month earlier. Y/Y the indicator was 1.5% versus 1.3% previously. The fact that the consumer price index began to strengthen, may deter the RBA from the theoretical rate cut in the near future. Again, in theory, rising inflation could stabilize the AUD.

Statistics on the trade balance of Australia was interesting, although unpleasant. The foreign trade balance, even seasonally adjusted, was negative in February and amounted to – 1.26 Bln AUD. It's even worse than expected according to the forecast. Exports in February increased by 1%, taking into account the seasonality of imports of goods and services added 2%.

It can be expected that the AUD/USD pair will deepen this minimum. This will become reality, if the American statistics on the March employment market will be positive and support the USD.


 FXTM Online Analysis Department. www.fxtmonline.com