Tatiana Kashyrskaia
China’s GDP grew by +7.9% in Q4 2012. China is Australia’s biggest trade partner. Therefore the news has had a positive impact on the dynamics of the Australian Dollar.
According to currency experts from TD Securities, the positive news from China amid relatively calm financial markets implies no threats to the Australian economy. Therefore, the RBA is unlikely to change its monetary policy during the forthcoming meeting.
The closest RB meeting is scheduled for February 5th 2013. Analysts say that the current AUDUSD exchange rate has already take into account the possibility of a 0.25% decline in the key interest rate. They say that the recent sales of the Aussie were connected with profit taking initiated by the bulls.
The situation will likely clarify this week after the authorities publish the inflation report.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of AUDUSD.
A further rally will probably encounter resistance around 1.0584 and 1.0597. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.0503 (as shown below).
Tatiana Kashyrskaia
