Global macro overview for 10/02/2017:
The RBA Monetary Policy Statement released by the Reserve bank of Australia reviews economic and financial conditions determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. In the latest statement released overnight, RBA sais the overall Australian economy in the second half of 2016 remained robust and the possibility of a widely expected downturn in the Australian housing market remained low. Nevertheless, the forecasts for 2016 GDP growth were revised down, when the economy unexpectedly contracted 0.5% after two straight quarters of economic growth. The main reason behind the contraction was largely due to temporary factors, such as a slowdown in building activity related to bad weather and coal supply disruptions. In a case of inflation expectations, RBA sais the target projections are at the level of 2-3% target band until the middle of 2019. The unemployment rate should stay in the range between 5-6% until the middle of 2019 and the annual rate of the population growth at the range between 1.5% - 1.6%.
Let's now take a look at the AUD/USD technical picture at the daily time frame after the statement was released. The market is still bouncing from the technical support at the level of 0.7609 and this will be the key level for bears if they want to push the prices lower. Due to the overbought market conditions the bias remains to the downside and if the technical support at the level of 0.7609 is violated, then the next support is seen at the level of 0.7511.
