The Australian economy is still at the stage of completing the period of high growth rates. This is what the IMF thinks on he matter, Market Leader reports. The experts warn the Reserve Bank of Australia about the necessity of decisive steps aimed at easing the central bank’s monetary policy in the near future if the economic situation in the country cries for it.
The thing is that the IMF experts sent 2 week analyzing the situation to conclude that the Australian economy is about to see a sharp slowdown. They also warn the Australians about the forthcoming decline in their standards of living while urging the central bank to regain the pace at which they used to be conducting reforms.
In particular, the IMF’s warning says that the Australian GDP is very likely to slow down to 2,5% in 2015. This is a dramatic decline relative to the 3-4% growth seen over the last 20 years, Masterforex-V Academy experts say. At the same time, the IMF predicts an even worse scenario with a deeper decline in case the central bank fails to give a timely response.
At this point, the biggest risks come from a possible retracement in the local market of residential property when coupled with weak invent activity and an even bigger economic slowdown in China, which is the biggest consumer of the commodities exported by Australia.
The current economic slowdown seen in Australia is currently taking place amid a dramatic decline in commodity prices and decreased investments in the mining sector while Australia is a commodity economy. Another big thing hindering the economic growth is a strong Australian Dollar making Australian exports more expensive and less attractive for importers like China and others.
As far as the Aussie is concerned, AUDUSD is still consolidating after a long-term downtrend. The market is relatively flat. The price has just completed a bearish wave - A/B of level Daily or higher, Masterforex-V Academy reports.
At this point, the price is probably forming wave A/B of level H16. In case of breaking the 0.7596 low, the currency pair will start a bearish move represented by wave A/B of level Daily 2 or higher. If this is the case, the following levels are likely to act as levels of support - 0.7531 + 0.7463, 0.7380.
At the same time, a break above the 0.7847 high will give way to a bullish move represented by wave A/B of level Daily or higher. If this is the case, the following levels are likely to act as levels of resistance - 0.7877, 0.7943, 0.8002.
