Australian dollar, AUD / USD, Australian Reserve Bank, RBA protocol – call points
- Australian dollar remains under pressure as Covid cases increase
- The Reserve Bank of Australia highlights health problems and an uncertain outlook
- Weakening Chinese data continue to weigh Aussie feeling
The Reserve Bank of Australia (RBA) published the minutes of its last policy meeting, in which market participants carefully looked for possible changes in the tone of the policy guidelines. The Protocol emphasized that the health crisis continues to play a major role in the implementation of adaptive policies, given that the near-term outlook remains very uncertain. Although financial conditions are still very favorable, the RBA noted that it is constantly reviewing the state of asset purchases. Note that some members considered postponing the reduction in asset purchases. Despite the current struggles, the RBA’s main scenario remains that economic growth will continue in 2022. Members have agreed that the central scenario for the economy is that the conditions for raising interest rates will not be met before 2024.
The situation with Covid in Australia remains dark, with Sydney reporting its deadliest day of the entire pandemic on Monday. Big cities are still closed, armed forces on the streets restrict all traffic. Sydney is reaching its 8thth closing of the week as the Delta option is wreaking havoc on the economy. Australia’s fight against the Delta variant comes from official figures that only 26% of people over the age of 16 have been fully vaccinated. Although larger cities are still under strict closure, the number of cases continues to rise. The recovery of the third wave of Covid highlights the potential for a twofold decline in Australia, with the RBA stressing that the near-term outlook has always been uncertain.
AUD / USD daily schedule
The chart is provided by TradingView
AUD /USD continues to trade sideways despite growing fears in Australia about the Delta Covid variant. Local closures across the country, coupled with weakening Chinese economic data, could continue to put a strain on the Aussie. Data on retail and industrial production from China remained weaker than expected last week due to a sharp decline in US consumer sentiment. Economic data with Fedspeak on a possible narrowing outline in the fall may also keep AUD / USD depressed to current levels. Currently, the pair continues to float above the zone found between 0.7300 and 0.7320. Should this level prove to be stable, the maps could have a September 2020 swing retry of around 0.7414.
AUD / USD 30 minute schedule
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– Written Brendan Fagan, intern
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