The Australian Dollar is looking for support. Overview for 22.11.2017

The AUD/USD pair lost its “recovering” impulse, but still managed to avoid being sold.

On Wednesday, the Australian Dollar is in delicate balance against the USD. The current quote for the instrument is 0.7569.

There is a good chance that the AUD/UISD pair will balance close to the current levels until the end of this week, because the currency market will become less active starting tonight due to the holidays in the USA and Japan.

The statistics published in the morning showed that the Leading Index added 0.1% m/m, the same as the month before. A positive reading is good for the Aussie and the Australian economy, but the dynamics is rather sad.  

The Sydney Morning Herald wrote today that the RBA Governor wasn’t satisfied with the way employers operate on the labor market. According to his opinion, no one but them could be blamed for little dynamic potential in salary increase. At the moment, the Reserve Bank of Australia and the government say, the amount of labor power and the number of jobs are balanced enough, and there are no stresses on the labor market, so salaries could have increased much faster. But they didn’t. In Lowe’s view, this is one of the reasons why the regulator won’t consider increasing the rates.

Recently, Lowe has been very active in commenting what is going on in the Australian economy. For example, this week he said that the current monetary policy of the regulator was justified by the low inflation and cautious sentiments on the employment market. The rates will remain at the current low levels until the Consumer Price index starts growing. By the way, the Aussie is barely reacting to these comments although they are quite logical.

RoboForex Analytical Department