Forex Marketz Daily Forex News – Fully Markets Update
(AUD/USD) 0.90359
Resistance Levels: 0.905, 0.908
Support Levels: 0.877, 0.895
We are noting a continuing negative trend on the strength of the Australian dollar. This trend reflects the monetary policy of their central bank and is welcomed as they are concerned over the strength of the local currency.
China forecast and Iron Ore demands further help this policy.
Outlook.
- Investors should follow data release from China this past Saturday which shows the likelihood of missing the industrial growth targets. This could significantly impact iron ore exports from Australia.
- Monetary policy reported by the Reserve Bank of Australia (RBA) outlines goals of under .90 by the end of the calendar year. The RBA follows this up with a goal of within the mid 80s by middle 2015.
- Despite these trends, job data reported was strong and RBA as they maintain a shift to neutral monetary policy for now. However, growing concerns about a housing bubble could force policy members to take action to deflate the growing bubble. This would also impact the AUD going forward.
