The Australian dollar is rising for the second day in a row. The AUD/USD managed to move away from multi-month lows and is now trading around the 0.7830 mark.
In the morning, the Reserve Bank of Australia said that it is waiting for inflation to be in the range of 2-3% in mid-2017. According to forecasts from RBA, the GDP growth by the end of this year will amount to 2.25-3.25%. By the end of 2016 the expansion of the Australian economy is expected at 3-4%.
Everything is more difficult with the labor market. It is expected that unemployment will continue to grow and reach its peak later on. For now there are no goals and deadlines. The employment market in Australia seems to have stabilized in 2013-2014, but now the tendency to worsen is fully manifesting again.
In the economy, among other things, there are recently fewer signs of accelerating in the pace of GDP growth. This is a global pattern in the world, but there is still hope that China will save the situation with its weight.
However, given that in the next two years Australia will drastically reduce investment in the mining sector, it does not look very optimistic. It’s not even drama yet – just a prelude.