Technical analysis and trading recommendations - https://fxpcm.com/en/fx/audusd-australian-currency-remains-under-pressure-30052016
The Australian currency fell sharply on Monday Asian session on the fall in world prices for iron ore. The price of futures for iron ore, the main export product of Australia, China dropped by 4.9%, to the lowest since February 2015.
In the first quarter of this year in Australia for the first time since the financial crisis of 2008 came deflation. The RBA has recently dramatically lowered the forecast of inflation in the country, waiting for him in 2016 of less than 2%.
Also previously published data indicate a weakening of the pulse of employment growth in Australia.
After the interest rate in Australia was reduced at the beginning of the month the first time since June 2015 to a level of 1.75%, the pair AUD / USD lost so far more than 400 points, continuing to remain under pressure. The US dollar on Friday received support from the Fed Chairman, Janet Yellen, reporting the tendency to tight monetary policy (if the economy and the labor market in the US will continue to be strengthened). Also on the Australian dollar is putting pressure expectation coming Wednesday (01:30 GMT) on Australian GDP data. As suggested by many economists, the data will be positive, but any slight deviation from the forecast downwards increase the likelihood of easing monetary policy in Australia.
Thus, several fundamental factors will contribute to the pressure on the quotes the Australian currency. Chief among these factors is the difference between the Fed and the RBA monetary policy.