02.12.2014 - RBA said on stable rates
Reserve Bank of Australia has once again pointed out the need to maintain a policy of stable interest rates. The statement also indicated that inflation remains within the target range, the decline in commodity prices was "significant", and most economic indicators point to a steady growth. The RBA reiterated the positive effect of reduction of the Australian dollar, which remains overvalued. The main external problem for the country's economy remains a crisis in the Chinese construction sector, which has led to a decrease in demand for the metal and as a result, a drop in iron ore prices. We keep medium-term negative outlook for the Australian dollar and recommend holding short positions with a target about 0.80.