The Aussie is plunging towards lows. Overview for 08.07.2021

AUDUSD has been falling for the third consecutive trading session; the “greenback” is very strong. 

The Australian Dollar is losing weight against the USD on Thursday. the current quote for the instrument is 0.7441.

The Aussie is being pressured by the USD pretty much, and, since there are no strong fundamental drivers from Australia so far, the national currency is going with the flow and falling, just like many other traded currencies. 

The RBA Governor believes that inflation risks in the country are few, so the indicator will remain stable at 2-3% until 2024. As it was said during the Australian Economic Forum, inflation has a direct influence on the time for raising the benchmark interest rate, although no partiture dates are important. To make the Consumer Price Index match the expectations, a salary growth should be over 3%. An extended period of closed borders may be the factor that pressures salaries in some sectors of the country’s economy and this risk should also be considered. 

At the same time, the RBA believes that the borders will be re-opened in the nearest future. A lockdown in Sidney announced recently attracts a lot of attention but the economy is expected to recover quite soon after it is cancelled. 

The Unemployment Rate, in its turn, should be close to 4% – in this case, the labor market will employ as many people as possible. This year, this sector has been recovering quite fats and that’s a very good signal. 

The RBA says some decrease in the QE program doesn’t mean that the regulator stops supporting the economy – it implies the third stimulus round set to start in September 2021 with the volume a bit smaller than before. 

In general, the Aussie could have found support in the RBA’s comments if it hadn’t been for pressure from the “greenback”.