Ivan Zhigalov
The Australian Dollar enjoys bigger support as investors seem to be getting more risk-averse. According to Robert Rennie, chief strategist at Westpac, the situation in the eurozone is aggravated by the Cyprus crisis. Therefore, investors are looking for safe-haven assets. The Aussie is one of them.
At the same time, the RBA is unlikely to cut interest rates in the near future. Strong macroeconomic data are the main reason for that. Earlier this year, experts used to expect 2 interest rate cuts in 2013, now most of them have reconsidered their forecasts.
For reference sake, last year the RBA cut interest rates several times in order to prevent a decline in the investment boom in Australia’s mining sector.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of AUDUSD. The currency pair keeps rallying.
A further rally (above 1.0478) will probably encounter resistance around 1.0481/84, 1.0538/55. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.0361 (as shown below).
Ivan Zhigalov
