Australian dollar has strengthened on the background of statement by the head of the Reserve Bank of Australia Glenn Stevens. According to him, inflation will meet the target level for the next two years, despite the fact that at the moment it is higher than it was before. In addition, he noted that the reduction in the demand for labor, wage cuts and rising inflation will not have a significant impact on the dynamics of the Australian currency.
Despite the refusal of the RBA from further lowering in interest rates, the monetary policy of the country continues to be directed at stimulating of non-mining sector. In addition, the pressure on the price of the Australian dollar has a lower growth of industry in China, which is the main trading partner of the country, as well as the reduction of the quantitative easing program in the U.S.
We maintain a long-term negative outlook for the Australian dollar. Dynamics of prices in the near future will depend on the data on the U.S. labor market.
Wish you the profits!
FXFINPRO Capital Analytical department.