Australian Dollar Rebounded After The Australian Federal Reserve Resolution, But Limited Upstream Space.

On the monetary policy statement, the RBA pointed out that China's economic policy is responding appropriately.

This is obviously a positive response to China's latest interest rate cut.

The Australian Federal Reserve's confidence in China's economic prospects has made the Australian dollar rebound to above 0.8500.

However, the RBA also pointed out that, in view of the fall in commodity prices, the Australian dollar exchange rate is still higher than the value reflected by the fundamentals.

There may be a need for a further decline in the Australian dollar exchange rate to help balance the growth of the economy.

Therefore, the space for the Australian dollar to rebound will be relatively limited.

From a trading point of view, the key to the Aussie dollar is whether it can stand above 0.8535.

If the resistance persists, it will be futile to recover the 0.85 pass.

The RBA continues to maintain interest rates unchanged and calls for a lower exchange rate to achieve economic equilibrium.

The RBA announced on Tuesday (December 2nd) that the benchmark interest rate will remain unchanged at 2.50%, consistent with market consensus expectations.

After the meeting, the RBA announced that it had continued its previous position: "the most prudent choice of the Fed may be to maintain interest rate stability over a period of time", but has made some changes in the Australian dollar exchange rate and the wording of the international economic description.

This is the fourteenth consecutive meeting of the RBA that has decided to maintain the cash interest rate unchanged at a record low of 2.5%. The bank has cut interest rates by 225 basis points since the end of 2011.

The full text of the statement after the Federal Reserve is as follows:

At today's meeting, the committee decided to maintain the cash interest rate at 2.5% of the original level.

The global economy continues to grow moderately.

China's economic growth is basically consistent with the objectives of policymakers. Although the slowdown in the housing market has become a major challenge for China's economy, economic policies may respond in a biased way to support growth.

The US economy continues to grow stronger, but both the euro zone and Japan are both weakening in the near future.

Commodity prices have been significantly downward for several months, reflecting the weakening of demand, and more importantly, the supply of commodities is also increasing.

The global financial environment is still very flexible, and the long-term interest rate and risk spreads are still very low.

The differences in the expectations of monetary policy in various countries are affecting the market trend, especially the foreign exchange rate.

Most of the Australian economy is consistent with the moderate growth of the economy.

Investment in resources industry began to decline significantly. Meanwhile, other private demand areas expanded, but the speed was different.

Public spending is expected to slow down.

Overall, the RBA expects growth in the next few quarters to be slightly slower than the trend.

The latest data confirm that inflation in Australia is still operating between 2-3% levels, as expected, and recent data also confirm a moderate increase in wage costs.

The Fed still believes that although some of the forward-looking employment indicators are firm this year, the unemployment rate is rising slightly.

There is still a degree of idle capacity in the job market. It may take some time to see the unemployment rate fall.

Therefore, wage growth is expected to remain fairly modest for some time to come. Even if the Australian dollar depreciates, the inflation rate will match the target.

Monetary policy is still adaptive.

Interest rates are at a very low level, and there has been a slight decline in recent months as competition for loans has intensified.

In the face of the low interest rate of security assets, investors continue to seek higher returns.

Overall credit growth has been moderate, but housing asset lending has been heating up in recent months.

Credit growth and the number of home loans have accelerated in recent months.

Housing prices continued to rise.

The Australian dollar has fallen recently, most of which reflects.

Strong, but the Australian dollar is still higher than most of the fundamentals of the valuation level, especially considering the further decline in key commodity prices in recent months.

It is expected that a lower Australian dollar rate is needed to achieve a balanced economic growth.

Looking forward to the future, we should continue to adopt a loose monetary policy.

To help speed up growth.

Inflation is expected to meet 2%-3%'s objectives in the next two years.

The committee judged that

More appropriate, can promote sustained demand growth, inflation will also meet the goal.

There are now indications that maintaining interest rates stability over time is probably the most prudent approach.

RBA is still on the move and the Australian dollar is jumping up and down. The market sentiment is still gloomy.

On Tuesday (December 2nd), the Australian dollar / dollar was at a level around 0.8515.

During the New York session of the last trading day, the Aussie dollar fell from the 0.8525 front and further extended its downward trend within the day.

The RBA has just announced that it will maintain interest rates unchanged at 2.50%, and reiterates that it is prudent to maintain interest rate stability over a period of time.

After the announcement of the interest rate resolution, the Australian dollar / dollar jumped sharply to 0.8508 and then fell rapidly. At present, the Australian dollar has rebounded again.

Analysts say they are temporarily maintaining a neutral view of the Australian dollar.

After the RBA announced that interest rates remained unchanged, the Australian dollar briefly soared, and then quickly rebounded all the gains. It now rebounded to a 0.8525 high again, but analysts believe that the market sentiment is too pessimistic to withdraw.

Analysts pointed out that due to the recent unexpected drop in interest rates by PBOC, and Australia's new private capital spending in the third quarter, the auspice of the Aussie dollar was only short-lived.

Therefore, the current market sentiment for the Australian dollar is still too pessimistic.