RBC Capital has reconsidered its forecast for the RBA’s key interest rate because of poorer economic conditions. The experts anticipate the central bank to cut the rate down to 2.75% next year.
According Su Lin Ong, an economist for RBC Capital, the necessity to reconsider the forecast emerged after the RBA cut the interest rate by 0.25% in June. The new forecast is revised with a glance at the escalating eurozone crisis and gloomier global economic prospects.
RBC Capital expects a gradual decline in the interest rates: 0.25% in August, December and early 2013.
Forex.
According to , AUDUSD keeps recovering against the long-term downtrend. At this point, the currency pair is forming wave 4 inside a major downswing – wave А/В. If the price breaks and consolidates above 1.0001, 1.0027 will turn into the closest level of resistance. A break below 0.9580 will resume the downtrend in the form of wave 5 or А inside the “Hound of the Baskervilles” pattern by Elder/MF. The closest levels of support are located at 0.9559, 0.9386.
