Global macro overview for 06/12/2016:
The Reserve Bank of Australia decided to keep the interest rate at a historical low of 1.50%. In the statement, RBA declared that the overvalued AUD could complicate economic recovery. Moreover, RBA judged steady policy consistent with growth and inflation targets, as the global economy is growing at a lower than average pace and the Chinese economy has stabilized as well. The global outlook for inflation is more balanced than “for some time” and commodity prices have risen, supporting Australia’s foreign trade. At the end, the RBA added, that they expect a slowdown in an annual growth rate in the year end before a pickup. In conclusion, RBA made rather dovish statements regarding both growth and inflation, so the time is not ripe yet for another interest rate hike.
Let’s now take a look at the AUD/USD technical picture in the daily time frame. After the golden trend line break, the bears are in control over the market. The technical resistance at the level of 0.7504 was tested from below and it looks like the market is going back to the trading range again. The next support is seen at the level of 0.7308.
The material has been provided by InstaForex Company – www.instaforex.com
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