They continue selling the Australian Dollar. Overview for 06.02.2018

AUDUSD is falling deeper as the American currency is reaching stability.

The Australian Dollar is still trading downwards against the USD. The current quote for the instrument is 0.7858.

The Reserve Bank of Australia had another meeting today. The benchmark rate didn’t change, 1.5%, just as expected. In the comments, the RBA said that external conditions for the Australian economy improvement remained positive. However, the regulator is expecting that in the years to come these conditions will stop improving rapidly, but remain at high level at the same time. The inflation is still rather low, but one can’t exclude the possibility that it may start increasing due to higher prices on raw materials and unstable employment market.

Expectations on the country’s GDP growth rate are 3% every year. This forecast hasn’t changed recently.

One of the possible risks for the Australian economy is the slow growth rate of household income. The inflation is expected to be 2% in 2018. The low key rate, according to the RBA, helps to support the economy.

In general, the meeting was very neutral, but no one expected anything special or surprising from the regulator.

The December Retail Sales report was a bit disappointing the indicator lost 0.5% m/m, although it was expected to decrease only by 0.2% m/m; in the previous month, it added 1.3% m/m.

RoboForex Analytical Department