The Reserve Bank of Australia confirmed in its August Meeting Minutes that it is not expecting to raise its Official Cash Rate, given at 1.50% since 8 February 2016.
The RBA sees improvement in unemployment, income growth and inflation. Inflation and unemployment forecasts are estimated at 2.25% (2018: 1.75%) and 5% by 2020. Current monetary policy should continue to support growth.
However, recent drought conditions affecting crop harvests is a serious factor to monitor, as farm output and export forecasts are reduced. Additionally, uncertainties surrounding US trade policies remain a serious impediment. The Aussie was little changed. Currently at 0.7358 USD, the AUD/USD pair is expected to strengthen, heading along 0.7370 in the short-term.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments."