AUD is close to four-month high in anticipation of the news
AUD is trading at highs last four months before the publication of a large number of economic news from the United States, China and the Australian economy over the next few days. September’s news on the labor market in the U.S., which had been postponed due to the suspension of the U.S. federal government in early October, will be published today. AUDUSD currency pair tonight was about $ 0.9660. For comparison, the previous day, on Monday evening, this one was at 0,9670 USD.
Market expectations that are voiced by analysts and economists of the Forex market (Forex) are as follows: the estimated inflation rate in Australia, 0.8% q / q and 1.8% y / y in Q3 of this year. News from the local market will be published tomorrow.
Such news on inflation can hardly encourage the central bank to reduce interest rates again. Especially considering the fact that since the end of 2011, the Reserve Bank of Australia has 8 times reduced interest rates to protect the economy from recession.
In Australia, is clearly enough to see a direct correlation between the record low interest rates and the positive influence on the economy. The unemployment rate has dropped significantly, and the level of business confidence has rose. Now, traders and analysts of Forex market (forex) practically are not worried about additional rate cuts. On the contrary, they expect the raise of interest rates next year.
“Report of inflation will be less important than it was before. Reserve Bank of Australia is satisfied with the current interest rates,” – said Paul Bloxham, chief economist at HSBC, Australia.
But we should not lose sight of the news about the level of applications for unemployment in the U.S.. If they show significant deviations from the expected, it will certainly have an impact on the AUD price .
Experts suggest that the U.S. unemployment rate will still be at 7.3% and the number of new jobs will be 180,000. This is somewhat higher than in the previous month.