Forex news. Australian consumer demand for garments, household goods, and services is slowly coming back to life. However, the Assistant Governor at the Reserve Bank of Australia Phil Lowe warned that retail trade shall get ready to continue experiencing the week demand of the population.
The recent rather week consumer demand has hit retail trade hard. On the contrary, the situation in services sector is not bad: educational services consumption has risen by 5% during this year, rest and recreation services – by 7%, hotel and restaurant businesses have increased their earnings by more than 6%, and transport services have risen by 10%, he added. He also admitted that the rise of household savings has become steadier than it used to be during crisis. This gives a fair financial buffer for the unstable world that we live in and represents a return to more traditional economic model.
On the basis of given speech, Phil Lowe highlighted that increasing expenditures on services will absolutely eliminate the idea of economic slowdown. Therefore, the Reserve Bank is not likely to consider the question of lowering the interest rate, as many economists and business heads suppose.
At Forex market Australian dollar is forming a descending ABC correction of Daily level to the long-term ascending trend. Experts of the Department of Masterforex-V Trading System explain that the currency pair is forming wave а(С) or a truncated wave С of the same wave level; point 0.9927 will be the nearest support. Further motion will be defined after a return to wave в(С), and the correction will continue after bear FZR within wave с(С) of the level lower than Daily. Breaking pivot MF and bear sloping channel will show the end of Daily correction. It will also signal that the market wants to continue the ascending motion within the long-term trend.
