According to the calculations of currency experts at Westpac, the Australian currency does not expect anything good in the near future. According to analysts, the results of the recent meeting of the Reserve Bank of Australia (RBA) had a negative impact on the dynamics of the national currency.
Recall, on Thursday, July 25, a meeting of the regulator was held, at which Philip Low, the head of the RBA, declared his readiness to further ease monetary policy. This is possible if an earlier reduction in the key rate fails to push the country's economy to growth. At present, experts are fixing the tendencies to the deterioration of the situation in the economy of the Green Continent. If unemployment and inflation do not improve by October of this year, the regulator will have to change the strategy. Westpac believes that the reduction in rates in Australia will be faster than expected.
Since the beginning of 2019, the Australian dollar has declined moderately over the past seven months. Maximum cost AUD in 2019 was fixed in the middle of January, and the minimum - at the end of last month. The price of the Australian dollar has changed the most in June, and the weakest of all - in July. Most of all, AUD lost in March of this year, according to the results of which its price decreased by 2.5%.
Currently, the currency of the Green Continent holds its position above the support line with June lows within 0.6960. Many experts see this as a chance for new attempts at recovery, but Westpac doubts the abilities of the Australian dollar. The bank believes that the AUD / USD pair expects to roll back to multi-year lows. A drop of honey in a barrel of tar will be a reduction in the Fed's rates, which will slightly support the Australian currency.
According to further forecasts by Westpac analysts, in the third and fourth quarters of 2019, the AUD rate will remain at 0.68, and in the first and second quarters of 2020 - at 0.66.
