Expectations are almost unanimous with regard to the "hold" decision at current levels. There are signs of self-satisfaction by the bank. They have missed the target of CPI for years, and their forecasts are almost never accurate.
Governor Lowe noted, "as was the case six months ago, for the time being, we have no good reason to increase interest rates in the short run."
The Bank expects its baseline scenario to be achieved in 2019 - 3% growth, inflation around 2% and unemployment rates around 5%. The main reasons for the passivity are: record low unemployment, many vacancies, good macroeconomic conditions, strong corporate profits, good commercial activity, more passive actions than other major central banks.
The Australian is still in a downward trend against the dollar in the long run and consolidation in the medium term. The 4 hour schedule shows the potential Head and Shoulders formation
A passive tune from RBA today will not do the Australian service, as I expect the negative movement to remain.
For entrance, we expect a break in the horizontal support area and position itself after a successful and confirmed break test.
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