At the auction on Monday the Australian currency continued to lose against its US counterpart, and a decrease of 20 points from 0.6871 has closed the day at 0.6851. The decline continues, and in the Asian session on Tuesday. It is worth noting that the high probability of such dynamics, we have repeatedly warned
Recall that the Australian dollar was among the outsiders on the background of a sharp change in the rhetoric of the Reserve Bank of Australia committed to lowering the interest rate. To demonstrate the seriousness of their intentions on the RBA last meeting for the first time lowered its key interest rate by a quarter point to a record low of 1.25% since August 2016. A few hours ago the attention of traders were presented minutes of the last meeting of the RBA, which shed more light on the Australian regulator plans to further stimulate the economy. Of the protocols should be that the interest rate will be lowered again at a future meeting. The RBA noted that against the background of high unemployment (5.2%), as well as the modest GDP growth, which slowed to 1.8% in the first quarter, decision to reduce the rate may well already be made at the July meeting. RBA expects that lower rates will lead to a weakening of the Australian dollar, which will support the competitiveness of domestic producers in the face of slowing global trade, as well as reduce the debt payments of households, high values which remain one of the major economic problems.
AUDUSD SellLimit 0,6860 TP 0,6710 SL 0,69
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets