The Reserve Bank of Australia is concerned about the Australian Dollar exchange rate once again. This is confirmed by the latest RBA meeting minutes, especially the part revealing the central bank’s monetary policy. To be more specific, the central bankers assume that the existing monetary policy corresponds to the real economic situation in Australia.
At he same time, the RBA assumes that a stronger Aussie may create challenges for the economic recovery. However, the Australian Dollar is a commodity currency, which is why it is recovering along with oil and iron ore prices. The RBA also shows respect to China’s existing policies, including various economic stimuli, which allows the bank to expect stronger demand for iron ore. If that’s the case, this is going to back economic recovery in Australia to a great extent.
The Australian labor market seems to be another key point of interest for the RBA. The bank has been closely watching the dynamics over the recent months, which is why the bankers believe there may be a certain slowdown in the way the rate of employment is recovering. However, the labor market is backed by salary growth.
FOREX
Meanwhile, Masterforex-V Academy reports that the Australian Dollar is getting stronger against the U.S. Dollar within the scope of a long-term rally, which means that AUDUSD is going up. To be more specific, AUDUSD is creating wave 3/C of level Daily6. There is a smaller-scale wave developing inside the move, which is wave a(C )/C.
For now, the closest major levels of resistance are Fibo levels 0.7850, 0.7914/22, 0.8074. A break below the bottom of the ascending MF sloping channel and MF pivot 0.7490 is going to indicate the completion of the existing wave.
