The Australian Dollar is back to its weekly lows. Overview for 18.04.2017

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The AUD/USD pair is falling significantly on Tuesday after the RBA’s comments.

The Australian Dollar found itself in a weak position against the USD on Tuesday. The current quote for the instrument is 0.7545.

This morning, the RBA published its April Monetary Policy Meeting Minutes. on the whole, the report was pretty neutral, however, there was one “but”: the regulator thinks that the real estate and employment markets are bearing significant risks.

For instance, the risks in the real estate market are expanding due to the perceptible difference in preconditions of purchase and sale. When it comes to the employment market, the positive tendency continues, but it’s rather weak for the economy to rely on it utterly and completely. When the labor market is highly competitive, salaries grow insignificantly as well as expenses on the manpower in companies and factories. One can’t say that it’s very obvious risk or some kind of a prerequisite to a deterioration of the situation, but it’s easier for the economy to grow when consumers spend their money. And if consumers don’t earn a lot, it will be pretty logical for them not to spend.

However, inflation estimations are still the same. The RBA’s target for the CPI is 2%, the regulator expects it to be reached this year. The core inflation may grow slower, but it’s okay.

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Under such circumstances, they started selling the Aussie, because the market has really nothing to challenge this news.

RoboForex Analytical Department

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.