The Reserve Bank of Australia has left the key interest rate unchanged at 2% during the recent meeting in early March. The meeting was dedicated to the central bank’s monetary policy. At the same time, the bankers say they may well cut the interest rate if necessary.
At the same time, it should be noted that this step made by the RBA didn’t come as a surprise to most of the international experts out there. The thing is that the RBA’s interest rate has remained unchanged for the 9th time in a row, Masterforex-V Academy reports.
Still, Glenn Stevens says the bank is ready to consider interest rate cuts if the national economy starts slowing down. For now, the rate of inflation remains below the target set by the central bank at 2-3%. This leaves some space for interest rate cuts in the future. Mostly likely, the main source of pessimism is G20’s pessimistic expectations regarding the global economy. The thing is that the G20 summit took place the other week and the participants are bearish on the near-term prospects of the global economy.
FOREX
In the meantime, Masterforex-V Academy reports that the Australian Dollar is going rallying within the scope of a new mid-term uptrend against the U.S. Dollar. In particular, AUDUSD is forming wave 3/C of level Daily.
For now, the currency pair is developing sub-wave 3/C inside the mentioned rally. The closest levels of resistance are the local high of 0.7257 as well as such Fibo levels as 0.7322/39, 0.7362, 0.7400. A break below MF pivot 0.7118 and the bottom of the ascending MF sloping channel will put an end to the rally, the experts say.
