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The Australian dollar touched a new four-year low hitting US85.39 cents before recovering slightly to US85.76 cents at 6.30pm (AEDT) after the latest monetary statement from the RBA. In what is becoming a common theme in each of their monthly statements the Bank retreated again their concern about the level of the Australian currency.
“Despite the recent depreciation of the exchange rate, the Australian dollar remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices over the course of this year,” the bank announced.
They also mentioned that money flowing in from Japan “could hold the Australian dollar at a higher level than real economic fundamentals would imply,”
Australia’s unemployment currently sits at 6.2% with the central bank predicting the outlook to be grim. “The participation rate is low and business surveys and liaison suggests that labor is readily available,” it said. “A sustained decline in the unemployment rate is not expected for some time.”
Later today will be the release of the latest non-farm payrolls data from the US which analysts predict will show a number of more than 200,000 confirming the American economy is steaming ahead. The latest unemployment rate will also hit the market with an expected number of 5.9% showing the jobless rate at a 6-year low with the potential to put added pressure on the Australian dollar.
Market Overview by FiboGroup
“Despite the recent depreciation of the exchange rate, the Australian dollar remains above most estimates of its fundamental value, particularly given the further declines in key commodity prices over the course of this year,” the bank announced.
They also mentioned that money flowing in from Japan “could hold the Australian dollar at a higher level than real economic fundamentals would imply,”
Australia’s unemployment currently sits at 6.2% with the central bank predicting the outlook to be grim. “The participation rate is low and business surveys and liaison suggests that labor is readily available,” it said. “A sustained decline in the unemployment rate is not expected for some time.”
Later today will be the release of the latest non-farm payrolls data from the US which analysts predict will show a number of more than 200,000 confirming the American economy is steaming ahead. The latest unemployment rate will also hit the market with an expected number of 5.9% showing the jobless rate at a 6-year low with the potential to put added pressure on the Australian dollar.
Market Overview by FiboGroup