Wayne Swan, Treasurer of Australia, assumes that an economic policy aimed at reaching a budget surplus is the only appropriate policy in the current economic conditions.
Amid relatively low unemployment rate and record-high investment level, a budget0surplus-oriented economy will be efficient. However, it will be more difficult for the Treasury to achieve a budget surplus amid lower financial inflows. Australia’s GDP growth in Q4 2011 was twice as low as expected, along with very low export (lowest in 3 years), the first budget deficit in 11 months and numerous problems in manufacturing production and retail sales sectors. At the same time, Australia’s mining sector saw an investment boom. The government’s policies give us to understand that a return to budget surplus won’t harm the country’s economic performance.
Forex.
In the meantime, reports that AUDUSD has just completed the upswing, probably wave В(С) of wave level Н4. A break above 1.0355 will start another rally - probably wave А/В of a bigger wave level - on condition that the price overcomes the MF pivot and sloping channel.
Alternatively, once the price keeps declining, the MF pivot 1.0256 and the 1.0242 low will turn into the closest levels of support. Once they are broken, the price may go further down to 1.0219.
