RBA has kept its interest rate, counting on weak growth of inflation.
As shown by protocols of June meeting of RBA, returning inflation to the target level has become one of the reasons to keep interest rate at the same level. Nevertheless, results of the first quarter have shown negative dynamics at housing market.
Although return of inflation to the target level has maintained the interest rate, RBA expects inflation to remain low for some time. Such decision has probably been made under the influence of latest information about regrowth of housing prices in Melbourne and Sidney.
Protocols also highlight signs of slowdown at labour market. Following the expectations, growth of employment is slowing down. At the same time, pressure on salary expenditures is assessed as moderate.
Protocols positively evaluate declining exchange rate of national currency, as well as data on national GDP. Growth of Australian economy in the first quarter by 0.5 points has exceeded experts’ predictions.
Housing Prices in First Quarter Dropped
Less optimistic are reports on housing market for the first quarter, as stated by analysts to the "Market Leader". Housing prices index has shown decline and amounts to -0.2%, whereas analysts expected the prices to increase by 0.8%. In the previous quarter the index amounted to 0.2%.
On an annual basis the index has shown rise by 6.8%, which is less than 8.7% in the previous quarter.
Meanwhile, Australian dollar continues mid-term trend for strengthening against US dollar. AUD/USD pair is rising within wave A/B of not less than Daily2 level, as stated by experts of Masterforex-V Trading System . As of 22 June 2016 the currency pair is within rising sub-wave 3/C. Probable targets of such movement are resistance at Fibonacci points 0.7565/98, 0.7639/52, and 0.7723, as well as pivot MF 0.7718. Breakout of pivot MF 0.7283 and lines of rising sloping channel MF will show the end of current wave.
