06.04.2015 - RBA decision will lead to a strong price movement
The Australian dollar continues to decline, despite the short-term growth caused by the weakening of the US dollar after the weak report on the labor market in America. The main factors that put pressure on quotes of the Australian currency remain low prices for iron ore, which is the main export commodity of the country, as well as the expectation of future application of the Reserve Bank of Australia, which is likely to lower the interest rate by 0.25% to 2.00%. In case of saving rates on the current level, we can see a strong upward movement that will have a short-term effect. Our medium-term outlook for the Australian dollar remains negative and we recommend holding short positions with the targets at 0.72 and 0.70.