Aussie goes down as RBA eases its inflation views
On Friday, the Australian dollar edged down after the Reserve Bank of Australia dared to lower its inflation views in the Statement of Monetary Policy.
The currency pair AUD/USD was worth 0.7403, demonstrating a 0.84% descend, while USD/JPY dropped 0.17%, trading at 107.08.
The RBA’s new forecast states that underlying inflation is going to stay within the 2-3% target range and remain there until the middle of 2018. Moreover, interest rates will be most likely reduced again to 1.5% in the nearer future.
After the previous forecast stating that inflation would be just 2% in 2016 and 2.5% in 2017, the RBA concluded that it would stay at 1.5% during the second quarter and below 2% the whole 2017.
Meanwhile, in Australia the AIG construction index surged to 50.8, thus reaching expansion territory compared to the previous level of 45.2.
Some financial analysts are assured that in the country’s residential construction sector activity is easing from last year’s peaks.