The Australian dollar found a reason for a rebound
03.06.2014
This Tuesday afternoon the AUD/USD pair is trading upward after the announcement of the results of the meeting of the Reserve Bank of Australia.
The Australian dollar on Tuesday is trading on the upside, "rehabilitating" after the drawdown yesterday.
Today ended the meeting of the Reserve Bank of Australia, where it was decided to keep the key interest rate unchanged at 2.5% per annum. The decision was anticipated by investors and economists and did not take anyone by surprise. Last time the revision in the reduced rate was in August 2013, as a whole, from November 2011 up to today, the rate was revised eight times.
Such a low interest rate allows to stimulate the economy, which remains in a recession phase due to lower levels of investment in the mining sector.
In the subsequent comments the head of RBA, Governor Glenn Stevens said that the economy is showing signs of recovery (this, apparently, is what pushed up the AUD). In addition, there are improved expectations for investment in other sectors of the Australian economy. Previously, the flow of investment was strongly drawn to the mining segment.
Regarding the Australian dollar rate Stevens noted that it is still high "by historical standards," but the AUD does not react to such verbal interventions.
Overall, everything was fairly predictable from the decisions to the comments from the RAB.
It is not excluded that the AUD/USD will attempt to go to 0.9295, but the road ahead will be very difficult.
RoboForex Analytical Department
The Australian dollar on Tuesday is trading on the upside, "rehabilitating" after the drawdown yesterday.
Today ended the meeting of the Reserve Bank of Australia, where it was decided to keep the key interest rate unchanged at 2.5% per annum. The decision was anticipated by investors and economists and did not take anyone by surprise. Last time the revision in the reduced rate was in August 2013, as a whole, from November 2011 up to today, the rate was revised eight times.
Such a low interest rate allows to stimulate the economy, which remains in a recession phase due to lower levels of investment in the mining sector.
In the subsequent comments the head of RBA, Governor Glenn Stevens said that the economy is showing signs of recovery (this, apparently, is what pushed up the AUD). In addition, there are improved expectations for investment in other sectors of the Australian economy. Previously, the flow of investment was strongly drawn to the mining segment.
Regarding the Australian dollar rate Stevens noted that it is still high "by historical standards," but the AUD does not react to such verbal interventions.
Overall, everything was fairly predictable from the decisions to the comments from the RAB.
It is not excluded that the AUD/USD will attempt to go to 0.9295, but the road ahead will be very difficult.
RoboForex Analytical Department
Attention!
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.