Forex news, AUDUSD. Lower rate of Australian dollar bond yields have resulted from RBA interest rate, which has dropped by 50 points. 27 out of 29 economists were predicting the RBA to lower the rate by 25 points, and only 2 of them managed to predict the actions of the National Bank correctly.
Proved to be right with their expectations, Citigroup Inc economists say that in the condition of globally worse economic condition, lower inflation, and considerable growth of unemployment in Australia, measures taken by RBA will help to find quick solutions to accumulated problems and return consumers’ trust.
Australian largest mortgagees – Westpac Banking Corp and Commonwealth Bank – have started adapting to new economic conditions, reconsidering their credit rates. At this point the central question is whether banks will fully pass decline to their clients. The majority of analysts suppose that banks will not lower rates by 50 points for their borrowers.
AUDUSD has considerably dropped in the course of several last days. According to the experts of Masterforex-V Trading System Department, AUDUSD currency pair has finished forming bullish wave А/В of Daily minimal level. Bearish wave А/В is currently being formed, and it is not over yet. Further decline of the pair will be faced by resistance at the point of sloping channel MF, pivot MF 1.0246, and the minimal point of 1.0225. When the maximum of 1.0474 is broken, bullish wave А/В of Daily2 minimal level will continue its formation.
Text by: Eduard Culchenko, expert of Masterforex-V Trading System Department
