Tatsiana Ketrar
The statement concerning the 2013 election that was made by Julia Gilbert, Australia’s Prime Minister, had no impact on the Australian Dollar exchange rate. Analysts say that the statement was unexpected for political scientists but failed to change the overall sentiment in the market of the Australian currency.
The election is scheduled for September 2013. According to Shawn Callow, a currency strategist at Westpac, the time factor kept the Aussie away from devaluation. Still, analysts warn that the news may affect the overall consumer sentiment. Consumers are expected to increase the pressure on the reserve Bank of Australia concerning interest rate cuts. Other experts expect a major retracement move in the market of AUDUSD.
The near-term destiny of the Australian dollar will be determined during the forthcoming RBA meeting, which is scheduled for February.
The chart below, courtesy of , reflects the current state of affairs in the market of AUDUSD. A break below 1.0378 will continue the bearish move. If this is the case, 1.0343 will turn into the closest level of support. Alternatively, the current downswing will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1.0577 (as shown below).
Tatsiana Ketrar
