The Reserve Bank of Australia has recently given market participants to understand that the key interest rate will be increased at some point in the future but more data on the domestic and global economies are needed to make a decision.
The RBA says the country’s inflation rate is moderate while the national currency is expensive. However, the board expects the rate of inflation to gradually increase if there is some growth seen in Australia’s resources sector.
"Members judged that it would be prudent to leave the stance of policy unchanged, pending further data on international developments and on the strength of domestic demand and inflationary pressures," the RBA report says.
In November 2010 the RBA lifted the key interest rate up to 4.75%. The rate has remained unchanged ever since.
FOREX.
The Australian Dollar keeps being under pressure. According to the Department of Masterforex-V trading system , AUDUSD is developing wave c(C ) H8, which will continue the downtrend. The closest support will be found at 1,0477. We can consider a rally only after AUDUSD breaks above the MF pivot and sloping channel (as shown below).
