Alex Bobrov
According to Glen Stevens, Governor of the RBA, the Australian Dollar remains overvalued. This is what the Governor said during the recent speech. Still, the statement failed to influence the currency market since the exchange rate went on showing strength without experiencing any pressure.
Mr. Stevens assumes that a cheaper national currency would contribute to the strengthening of the Australian economy amid structural reforms that are currently underway.
According to Richard Grace, Chief of Commonwealth Bank, Stevens only repeated the RBA’s official standpoint. On top of that, the expert says that the resolution of the US debt ceiling issue and the RBA’s intension to keep the interest rates unchanged contributed to the strengthening of the Aussie last week. Another bullish factor was connected with several signs of recovery in the Australian economy.
According to Masterforex-V Academy, the Australian Dollar keeps strengthening against the US Dollar. The experts report that AUDUSD is forming wave А(С)/С inside a bigger-scale upswing represented by wave А/В of level Daily.
A further rally will probably encounter resistance around 0.9713, 0.9763/70, 0.9918/21. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 0.9425 (as shown below).
Alex Bobrov
