Technical analysis and trading recommendations - https://fxpcm.com/fx/aud-usd-australian-dollar-overbought-14032016
In recent years, come from Australia is very positive evidence of a stable state of its economy. Thus, the GDP grew by 3.0%, which is higher than the forecast of 2.6% in Q4 2015. In the previous quarter also marked by good growth of 2.7%. The growing rate of GDP reduces fears of a recession in Australia. The negative point is unexpectedly grew in January, unemployment (6% versus 5.8% in the previous month). However, according to the central bank chief Glenn Stevens, the labor market risks are restrained, and inflation close to the target range.
Nevertheless, the outlook for the global economy has not yet improved, the volume of Chinese imports from Australia amid slowing economic growth of Australia's largest trading partner fell and commodity prices remain low.
This situation can worry the leaders of the central bank of the country. The high rate of national currency is not favorable to exporters Australia and harms the recovery of the Australian economy.
At its last meeting on March 1 RBA left interest rates in Australia, unchanged at 2.0%.
If the Fed on March 15-16 meeting made the decision about the next interest rate rises in the US, the pair AUD / USD could rise even more.
The higher increase in the Australian dollar quotations, the greater will be the pressure on the RBA's lead in deciding to reduce interest rates in Australia.
From news of the week in addition to the Fed meeting should pay attention to the Bank of Japan interest rate decision (March 15, 03:00 GMT) and the publication of the minutes of the last meeting of the Republic of Belarus and Australia on March 15 at 00:30 (GMT).