According to Glenn Stevens, Governor of the Reserve Bank of Australia, the RBA has an opportunity to cut the key interest rate even further down. At the same time, Alliance Bernstein warns investors against excessive optimism when evaluating the Australian economy.
The problems seen in Australia’s national economy are the result of the so-called global economic slowdown, Mr. Steven says. Still, the economy continues adapting to the new economic conditions slowly but surely.
During his latest speech, the Governor gave everyone to understand that the key focus is now on the non-mining sectors of the Australian economy when it comes to backing development and recovery. He is glad that the rate of employment is accelerating while Australian companies are reporting better business conditions in the country, which favors employment expansion.
FOREX
Meanwhile, Masterforex-V Academy reports that the Australian Dollar is still going up in value against the U.S. Dollar while being loyal to the same mid-term downtrend of AUDUSD. More specifically, the currency pair is moving up within the scope of another downswing – wave 3/C of level Daily. The price is developing a minor move – wave 3/C of a junior wave level.
With that said, a break below the bottom of the ascending MF sloping channel and MF pivot 0.7157 will put an end to the rally. Alternatively, the current rally may encounter resistance around such levels as 0.7292/94, 0.7355/61, 0.7386 + the 0.7380 high.
