Market Leader informed
According to Glenn Robert Stevens, Governor of the Reserve Bank of Australia, the market sentiments over gradual toughening the credit and monetary policies are generally right.
During his speech in front of the legislators in Canberra Mr. Stevens said that at this stage one should expect only gradual increases in the interest rates, which are distant from each other in time. According to him, the central bank has no functions to rescue a risky business bank. Such decisions should be made by the government.
Mr. Stevens assures that the Reserve Bank of Australia will always be offering liquidity on security. He also notes that threshold level of guarantees for government deposits needs considering. As of today the size doesn’t exceed 1 million Australian dollars. In late 2011 the guarantees will expire.
Thereby, Glenn Stevens confirmed the market participants’ opinion that the existing size of the main interest rate in Australia is reasonable as the gradual growth of the AUD currency rate helps to restrain the inflation.
Against the background of all the above-mentioned AUDUSD keeps declining at Forex.
So, one shouldn’t expect any changes over the short term. According to experts, the next reconsidering of the interest rate will take place in Feb 2011.
Experts of the Department of studying Masterforex-V trading system note that AUDUSD continues its downward movement started at 1.0181 and at the moment it is forming wave C on D1. The tendency will hold true until there is a breakout of the MF pivot and sloping channel.
Resistance levels:
1.0181 AD1 base
0,9952 СD1 base
0,9845 MF pivot
0,9631 the current price
Support levels:
0,9550 138,2% AD1
0.9442 161.8% AD1
0.9378 61.8% AW1
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