By midweek, the AUD/USD pair has strengthened fairly well, based on the published statistics.
According to the statistics presented this morning, the volume of completed construction in Australia at the end of the fourth quarter of last year fell by 1.6%, but with the seasonally adjusted the indicator "dipped" only 0.2%. This is good information: the forecast assumed a more significant decline, of 1.2%. At the same time, the statistics for the third quarter was revised to fall to -2.8% from -2.2% before.
This release is very important: on the basis of it, one can analyze the condition of the entire construction sector in the country. In that case, if the indicator is growing, a local currency growth phase also begins.
And this is what happened with the AUD/USD pair.
However, I want to remind the following point: the Reserve Bank of Australia strongly opposed the growth of the Australian dollar. In each of their comments the RBA mentioned that the AUD is overvalued, and a cheaper currency is needed to restore the growth of the local economy.
In this light, it is possible to assume that the growth in the pair will be short lived - just until the moment when the AUD strengthens to the level that is "uninteresting" to the RBA.
RoboForex Analytical Department
According to the statistics presented this morning, the volume of completed construction in Australia at the end of the fourth quarter of last year fell by 1.6%, but with the seasonally adjusted the indicator "dipped" only 0.2%. This is good information: the forecast assumed a more significant decline, of 1.2%. At the same time, the statistics for the third quarter was revised to fall to -2.8% from -2.2% before.
This release is very important: on the basis of it, one can analyze the condition of the entire construction sector in the country. In that case, if the indicator is growing, a local currency growth phase also begins.
And this is what happened with the AUD/USD pair.
However, I want to remind the following point: the Reserve Bank of Australia strongly opposed the growth of the Australian dollar. In each of their comments the RBA mentioned that the AUD is overvalued, and a cheaper currency is needed to restore the growth of the local economy.
In this light, it is possible to assume that the growth in the pair will be short lived - just until the moment when the AUD strengthens to the level that is "uninteresting" to the RBA.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
No comments:
Post a Comment