During today's speech of the Head of the Reserve Bank of Australia Glenn Stevens stated that the investors underestimate the possibility of a fall of the national currency. As a result, we can conclude that the Australian dollar may drop by more than a few cents. It should be noted that today was published the data on increase in the number of permits for new housing construction by 9.9% in May, which is significantly better than the forecast of growth by 3.1%. Retail sales in the country fell by 0.5%, which contributed to the continuation of the fall of the Australian dollar that started yesterday after the release of data on the growth of the country's trade deficit to 1.91 billion, with an expected deficit of 0.16 billion.
Taking into account these factors and slowing investment in Australia's mining sector, we expect decline of the Australian dollar in the medium term with targets at 0.9320 and 0.9220.
Wish you the profits!
FXFINPRO Capital Analytical department.