18.03.2014 - RBA monetary policy remains soft

The price of the Australian dollar has reached a strong level 0.9100, but could not break through it and started to correct against the publication of minutes of meetings of the Reserve Bank of Australia. On the basis of the protocols, we can conclude that the RBA is not going to increase interest rates and thus retains the possibility of further easing of monetary policy to support economic growth and to fight the high exchange rate of the national currency. Inflation target remains at 2.0%, and leading indicators testify the likelihood of improvement in the labor market of the country.

In addition, it is worth noting that a number of international companies plan to close production capacity in Australia. At the same time, the national currency is under the pressure of reduction of growth of industry and the problems in the construction sector of the country's largest trading partner - China.

We keep medium and long term negative outlook for the Australian dollar.

Wish you the profits!

FXFINPRO Capital Analytical department.

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.