According to the experts interviewed by Fitch, a famous international rating agency, the lending volume in Australia will keep growing this year. The respondents also singled out several major risks for the Australian economy and made some predictions for it.
It seems like investors expect stability. They say that the major risks threatening the Australian economy are external. The biggest risk seems to be the possibility of «hard landing» for the Chinese economy. In this aspect, it should be noted that China is the main consumer of the commodities exported by Australian mining companies. Strange as it may seem, but European economic and energy problems seem to present certain risks for Australia as well.
Still, 67% of the respondents assume that the state of affairs in the Australian economy will remain relatively stable throughout the year despite all those risks.
At the same time, 25% of the respondents assume that the lending conditions in the country will improve. The survey was conducted among investors working in the market of fixed-income securities.
At the same time, the participants of the mentioned survey expect a slowdown in housing prices within the next 3 years. Still, most investors (53%) think the prices will continue to increase by 5-10% this year. 80% of the respondent assume the rate of unemployment won't exceed 6,5% in 2014.
Meanwhile, the Aussie is still retracing from the long-term rally against the US Dollar. As of today, AUDUSD has just completed wave A of level H4. A further decline followed by a break below 0,9221 will start a bigger-scale downswing, probably wave A/B of level H8 or higher, Masterforex-V Academy reports. If this is the case, the following levels will become support levels: 0.9216, 0.9192/82, 0.9147/40.
Alternatively, a break above the local high at 0.9302 will resume the long-term rally. In this case 0.9320, 0.9375/92 will become the closest major levels of resistance.
