The Aussie rallied up to the 4-wekk high, which was mainly provoked by the weakening of the US Dollar after the Federal Reserve’s decision to start another round of quantitative easing (QE3). Despite the fact that the central bank promised to maintain low interest rates till mid 2015, the currency strategists working for UBS assume that AUDUSD may well consolidate around the current price level.
The near-term destiny of the Australian Dollar will be decided after the forthcoming RBA meeting minutes. The release is scheduled for Tuesday. The RBA is concerned about the fact that the national currency is too strong despite lower commodity prices (the Aussie is a commodity currency).
The experts working for AMP assume that the RBA will have to consider further interest rate cuts in order to ease the pressure on the national economy.
According to Bill Evans from Westpac, the RBA will cut the key interest rate by 0.5% till the end of 2012.
Forex.
According to , the Aussie keeps strengthening against the US Dollar. The experts report that NZDUSD is forming a big-scale upswing represented by wave А/В of level Weekly2.
A further rally will probably encounter resistance around 1.0698. The current long-term rally will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.0166. (as shown below).
