The Reserve Bank of Australia is expecting weak GDP growth in Q2 2015. Still, the RBA assumes that lower commodity prices will back some economic growth in the country in the near future.
Lower interest rates have been exerting positive effect on higher consumption and investing in residential property. Market Leader reports that Sydney is reported to have seen a sharp increase in housing prices.
Meanwhile, the central bank expects the rate of inflation to be in the target range within the scope of the next 12-24 months. The volatility seen in stock markets worldwide hasn’t brought much changes to other markets.
FOREX
As for the global currency market, the Australian Dollar has been strengthening against the U.S. Dollar on its way to new local highs. In particular, AUDUSD is reported to have broken the top of the descending MF sloping channel and consolidate there. The currency pair is currently trading around 0,7221, which means that the bearish wave started at 0,8162 is complete.
With that said, the closest major level of support is 0,6905 while the closest major level of resistance is 0,7438.
