{"id":20753,"date":"2011-04-21T15:30:39","date_gmt":"2011-04-21T19:30:39","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20753"},"modified":"2011-04-21T15:30:39","modified_gmt":"2011-04-21T19:30:39","slug":"pressure-mounts-on-rba-to-tighten-monetary-policy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/04\/21\/pressure-mounts-on-rba-to-tighten-monetary-policy\/","title":{"rendered":"Pressure Mounts on RBA to Tighten Monetary Policy"},"content":{"rendered":"

By Greg Holden<\/strong><\/p>\n

The Reserve Bank of Australia (RBA) is receiving additional pressure with each passing week to tighten its monetary policy <\/a>in the near future. Data has shown inflation rising in Australia at levels beyond expectations and analysts are now expecting the RBA to take steps to control such growth.<\/p>\n

As an example of recent pressures mounting the RBA\u2019s next rate decision is Wednesday\u2019s report on surging import prices which rose an unexpected 1.4% on the quarter, above the expected 0.8%. This morning\u2019s higher-than-forecast Producer Price Index (PPI) out of Australia also supports this notion with a reading of 1.2% growth.<\/p>\n

The Aussie dollar has been rising for some time, only recently experiencing uncertainty on Chinese rate statements following last week\u2019s G20\/IMF meetings. Business sentiment in Australia is also rising with today\u2019s confidence survey by the National Australia Bank (NAB) signaling sufficient optimism emerging in the Aussie economy.<\/p>\n

The combination of positive inflationary growth with speculation that the RBA will undertake monetary tightening in its next round will likely affect AUD values<\/a> to the upside. Traders may want to take advantage and begin pricing in such expectations. Look to continue going long on the Aussie dollar in the near future.<\/p>\n

Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em>
\n<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Reserve Bank of Australia (RBA) is receiving additional pressure with each passing week to tighten its monetary policy in the near future. Data has shown inflation rising in Australia at levels beyond expectations and analysts are now expecting the RBA to take steps to control such growth.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-20753","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=20753"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20753\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=20753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=20753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=20753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}