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Things are not looking good in Australia. The second quarter CPI figures are out, and they point to a continued slowdown in the economy. In fact, it is the slowest pace of growth since 1983, and that’s hitting the country’s currency hard.
The Royal Bank of Australia have their next meeting on 2nd August, and until then we can expect that sustained pressure will be put on the RBA, urging them to intervene and change monetary policy. Until that happens waning business confidence and slowing consumer spending will continue to weigh heavy on the Aussie dollar.
Going forward we can expect the bearish trends in the currency pairing of the AUDUSD to continue. Until there is a better steer from the RBA or monetary policy changes to kick start the economy, we can expect the American dollar to be the stronger currency of the two.
AUDUSD is trading into a tightening range with both ascending and descending lines surrounding the highs from last week and lows from this week. The measured move up would mean a test of 80 while a move lower could mean 72
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