The Reserve Bank of Australia didn’t make any changes to its monetary policy during the latest meeting held in early November. The RBA Governor reported moderate economic growth. That is why the RBA decided to make no changes to the existing monetary policy.
More specifically, the RBA preserved the key interest rate at 2% during the latest meeting. It should be noted that the decision didn’t come as a surprise despite mixed market sentiments, Market Leader reports.
The RBA assumes that in spite of the economic figures below the average, the economic prospects have improved. At the same time, the latest surveys show that the business climate and business conditions in Australia have recently improved.
The rate of inflation has been low and is going to stay low over the next 2 years, but within the scope of the target range. In Q3 2015, the rate of inflation was at 0,3%.
FOREX
In the meantime, Masterforex-V Academy reports that the Australian Dollar has been recovering from the long-term downtrend against the U.S. Dollar. Specifically, AUDUSD has just put an end to the latest bearish move – wave A/B of level Daily.
However, the currency pair is trading inside a bullish momentum – wave A/B. A break above the 0.7380 high and the top of the descending MF sloping channel will indicate the start of a bigger-scale move - wave A/B of level Daily2. The closest levels of resistance are 0.7518/50 and 0.7848. Alternatively, a break below 0.7066 will start a bearish move - wave A/B of level Daily2. If that’s the case, the price may find support around 0.6992, 0.6935 and 0.6907.
