The Australian dollar has a significant week ahead
– This week we will have Australian Reserve Banking Rate Settlement. However, investors in addition to the report of monetary policy of the central bank will also pay attention to retail, trade balance and PMI reports. The Australian dollar has weakened before the Australian Reserve Bank meeting. Investors are predicting that the central bank will behave with Cautiously. Such a view contrasts with the comments made by the head of the Central Bank in September, the Central Bank had announced in September that lower interest rates would exacerbate existing risks. the Philippe Lev’s opinion led to a sharp rise in AUDUSD.
– Nevertheless, Australian economic indicators were weak during the past month, that the consumers and business index dropped, GDP growth has slowed down, the inflation sentiments decreased and economic activity growth in the service sector has decreased too… Copper and iron prices have also experienced a big decline, and China’s credit rating (Australia largest export destination) has also declined. Accordingly, we can say that there is no specific reason for the central bank’s happiness. If the Australian Reserve Bank speak cautiously about the future, we can expect further downward in AUDUSD moves. But if the central bank emphasizes the steady increase in inflation expectations, economic activities and inflation growth, AUDUSD will move back to $ 0.80