The Reserve Bank of Australia appears poised to slice official interest rates, with governor Philip Lowe on Tuesday saying it would be on the bank’s agenda next month.
In a speech to the Queensland branch of the Economic Society of Australia in Brisbane, Dr Lowe said without a cut in interest rates it was unlikely the bank’s forecasts for lower unemployment and a lift in inflation would be met.
Reserve Bank governor Philip Lowe, in a speech in Brisbane, says the RBA will “consider the case for lower interest rates” when it meets in June.
Declaring that Australia could “do better” than have an unemployment rate around 5 per cent, he said there were few options for the RBA but to consider a rate cut.
“A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target,” he said.
Not only is the Australian economy dealing with the adverse effects of the US-China trade war, but their housing market is starting to implode as well. Thus, everyone in the currency world is expecting the RBA to cut interest rates to 1.25% in June in two weeks. Thus, I’m expecting more downside on the Aussie, but how much, well, lets go to the charts.
Monthly Chart (Curve Time Frame) – monthly supply is 0.8800 and the immediate monthly demand is 0.6900.
But the zone is no longer fresh, meaning price was here before and unfilled buyer orders got filled, so there are few to no unfilled buyer orders left.
Thus, the chart suggests the monthly demand at 0.6900 will get breached and slowly make its way to the next monthly demand at 0.6100, with a first target at 0.6400.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.