Subdued volume remains unchanged after RBA

2018-11-06 18:23    HotForex
Subdued volume remains unchanged after RBA Institution Opinions

AUDJPY and AUDUSD, H1 and Daily

RBA left policy unchanged, as it had been widely anticipated, which leaves the cash rate at 1.50%, where it has been since August 2016. Governor Lowe’s statement signalled an ongoing neutral policy bias with a view to eventually tighten. The statement highlights slightly upward revisions to RBA growth projections, which is seen averaging 3.5% over 2018 and 2019 before slowing in 2020.

Overall positive business conditions are noted in both the global and domestic economies, but the statement notes the risk being posed by the direction of trade policy in the US and Australia, the outlook for consumption growth, with household income growth remaining low and debt levels high. Lowe also drew attention to the impact of Australia’s drought. The outlook for employment is deemed to be good, with the jobless rate seen dropping to 4.75% by 2020, although only a gradual pick up in wages is foreseen. Inflation is noted as remaining benign, with underlying CPI average 1.75% over the past year, with only a gradual acceleration expected over the next couple of years. The central scenario is for CPI to pick up to 2.25% in 2019, and a “bit higher” in 2020.

Australian markets have been little impacted by the policy decision and statement. AUDJPY is few pips below highs posted on Friday, with next Resistance levels coming at 82.14 (200-day SMA) and 82.35 (September 21 high). AUDUSD on the other hand, consolidates around the 0.7220 area, as directional ambition looks to be curtailed into today’s midterm elections in the US, which carries potential implications for Trumpian economic policy should the Democrats wrest control of the House.

 

Andria Pichidi

Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

RBA

0 traders reviewed this item, please leave a reply!

About FXYEAH | Broker Listing | Contribute | Contact Us | Sitemap | TagCloud
Disclaimer: All contents of site are only for your reference, don't suggest you do any investment decision, you should be responsible for your decision.