Article By RoboForex.com
The AUD/USD pair is holding a regular trading session at week lows, but it has not yet retreated to the February “bottom”.
The Australian dollar remains wary: the foreign exchange market is clearly saving power before active movements, and even where it could react, it behaves cautiously.
On Wednesday morning, statistics on the index of consumer confidence in Australia in February were released by Westpac Banking Corporation. According to the published figures, the indicator rose immediately by 8%, amounting to 100.7 points against the previous value of 93.2 points. February statistics are the first in a long time where improvement in sentiment of Australian consumers is clearly noticeable.
It is worth paying attention to one publication – in December the volume of loans for mortgages increased by 2.7%, exceeding the forecast of 2.0%. Data for November was also revised with improvement: the index is estimated at -0.4%. At the end of the year parameters of the investment loan for the construction of real estate in Australia have also improved: demand rose by 6%, although previously it was in the negative area.
It is possible that the Reserve Bank of Australia very timely decided to reduce the interest rate to 2.25% per annum. The reduction is small but it is able to stabilize the economy in a real way.
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Of course, this is still the first signal, and a full-scale effect of the reduced rate can be seen in two to three months. In this case, the labour market will remain in a weak position due to the reduction of investment in the mining sector.
Article By RoboForex.com
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.