20.05.2014 - Minutes of the RBA supported the bears
Publication of the minutes of the previous meeting of the Reserve Bank of Australia has led to sharp decrease in quotations of the Australian dollar. The minutes noted that the interest rate remains at 2.50%, domestic expenditures will be reduced due to budget cuts, GDP and investment in the mining sector will be reduced and investments in the housing market will grow. One of the main ideas in the protocols was that the decline of the national currency should help economic growth in the country.
It should be noted that the national currency of Australia is negatively influenced by reduction of industry growth in China, as well as the drop of iron ore prices, which quotes have fallen below 100 U.S. dollars per ton.
We expect further decline of the Australian dollar and maintain a medium-term negative outlook for the AUD/USD.
Wish you the profits!
FXFINPRO Capital Analytical department.