AUDUSD remains under “bearish” pressure amid the RBA’s comments and its Monetary Policy Meeting Minutes.
The Aussie is falling against the USD on Tuesday morning. The current quote for the instrument is 0.7748.
The Australian Dollar remains weak as the Reserve Bank of Australia confirmed its intentions to keep the benchmark rate low as long as it had to. In the Monetary Policy Meeting Minutes published earlier today, the regulator said that it wasn’t going to revise the rate until the Australian CPI reached 2-3% and remained stable. At the same the time, the RBA is expecting inflation and unemployment to reach their respective targets not earlier than 2024.
According to the RBA, the negative rate in Australia is highly unlikely, while the stimulus programs will continue as long as the country’s economy requires.
The regulator also said that the Aussie rate was lower than it might have been without the monetary intervention and this comment was quite interesting: as a rule, the RBA keeps repeating that the national currency is too expensive and that’s bad for the economy. The government and the regulator are planning to keep a close eye on the local fluctuations in the CPI.
The statistics published earlier showed that the HPI added 3.0% q/q in the fourth quarter of 2020 after adding 0.8% q/q the quarter before and against the expected reading of 1.9% q/q. This is a rather neutral indicator but it may be considered quite positive for the country’s economy – consumers’ interest in real estate is improving.
Orgin: RoboForex
