The Australian national currency has become a point of concern for the Reserve Bank of Australia once again. This is confirmed by the latest RBA meeting minutes released the other day. To be more specific, the central bank assumes that the monetary policy pursued by the bank is adequate to the existing economic situation in Australia.
Still, the central bankers believe that a stronger Aussie may create some deterrents for the economic recovery in Australia. This is what the meeting minutes read. At the same time, the recovery of the Australian Dollar is taking place amid stronger oil and iron ore prices since the Aussie is a commodity currency. At the same time, the central banks praises China’s economic stimulation, which indeed may well send iron ore prices even higher to new local highs.
As for the local labor market, the RBA are also focused on the situation in the market and keep on closely watching it. The central bankers expect a slowdown in the pace of employment growth. At the same time, they praise higher salaries and wages, which also back the recovery of the Australian labor market.
FOREX
In the meantime, Masterforex-V Academy reports that the Australian Dollar is still rallying against its American counterpart within the scope of the same long-term rally. To be more specific, the experts say that the currency pair is moving within the scope of wave 3/C of level Daily6. AUDUSD is developing wave a(C )/C inside the move.
The closest major levels of resistance are 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 put an end to the existing price move.
