07.11.2014 - The crisis in the construction sector in China remains a major external challenge for the Australian economy

Today, was published a report of the Reserve Bank of Australia on monetary policy in which confirmed the intention to maintain a policy of stable interest rates. The forecast for inflation in 2015 was reduced to 1.5-2.5%, against a previous forecast of 1,75-2,75%. GDP growth in 2015 is expected to be 2.5-3.5%. The RBA continues to consider that the Australian currency to be overvalued, and the unemployment rate will remain high. The main problem is the external crisis in the Chinese construction sector. Given the low prices for export products and the strengthening of the US dollar, we keep the medium-term negative outlook and recommend holding short positions with target levels of 0.85 and 0.80.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.