RBA MINUTES POINT TO WEAK ECONOMIC GROWTH IN AUSTRALIA

The AUD/USD price, has broken through the lower boundary of the ascending channel but could not fix beyond it. Minutes of the previous meeting of the RBA had a negative impact on the mood of the bulls. The minutes confirmed that interest rates remained at the same level due to weak economic growth in Australia. The wage growth is mild, but the outlooks are optimistic. Support for the pair has come from rhetoric by FOMC member Charles Evans that resulted in USD depreciation.

Mr. Evans stated on the necessity of slowing down the pace of interest rates hikes in the US and cuts in the Fed’s balance sheet that will help the economy to reach the target inflation rate at 2.0%. For continued growth, quotes need to overcome the strong resistance line at 0.7635. In this case the next objectives will be 0.7700 and 0.7740. On the other hand, to reverse the trend with closest targets at 0.7520 and 0.7420, the price has to break through the support at 0.7565. Today the mood of traders may be influenced by data on the current account balance at 12:30 GMT and FOMC member Kaplan’s speech at 19:00 GMT.