The recent RBA meeting ended with a decision to cut the key interest rate by 0.25% down to 3.0%.
Glenn Stevens, Governor of the RBA, says that the bank expects the global economic growth to stay below average, which a chance of a further slowdown due to the continuing eurozone crisis and budget issues in the USA (the so-called “fiscal cliff” issue). Still, the RBA is reassured by a positive shift in the economic situation in China.
The latest economic reports give the central bankers some grounds to assume that the Australian economic growth is moderate. Investments in Australia’s mining sector keep supporting the growth.
The RBA expects a increase in consumer spending. The rate of inflation is expected to stay within the target rage in the long run, though short-term volatility is still probable in the near future.
The RBA is aware of the fact that the previous monetary decisions haven’t still come up to expectations. Nevertheless, the bankers assume that further easing is required to support stable demand in the near future.
Forex.
According to , 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.
A break above 1.0489 will resume the forming of wave 3 or С of level Daily2. In this case, the price will probably encounter resistance around 1.0511, 1.0537. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.0392 (as shown below).
