- Analytics
- News and Tools
- Market News
- AUD/USD: Potential downside towards 0.65 – Rabobank
AUD/USD: Potential downside towards 0.65 – Rabobank
FXStreet notes that since the start of this year AUD/USD has dropped over 6%. While the move is currently looking a little over-extended, judging by the current tone of the news-flow the AUD is still vulnerable to further falls over the medium-term, according to analysts at Rabobank.
“As low wage inflation and soft price pressures have been symptomatic of the issues facing RBA policymakers for some time, the fall in the value of the AUD will not be totally unwelcome at the central bank – though the pace of the drop this year may be of some concern.”
“The RBA will meet for its next policy meeting on March 3. Last week the minutes of the February 4 meeting were released. The minutes highlighted that ‘members reviewed the case for a further reduction in the cash rate at the present meeting’, which was taken by the market as a dovish signal.”
“Any sign in next week’s meeting that policy-makers’ concerns regarding coronavirus are escalating will increase the risk of another 25 bps reduction in rates in the coming months. This will increase downside potential for AUD/USD towards 0.65.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
