Over the past week we received top tier economic data updates on employment change, unemployment rate and the first public speech by the new RBA governor, Philip Lowe.
-In his first speech, He noted why the next CPI print will be vital, as the actual inflation is a key input to inflationary expectations.
– He hinted a cautious approach to further interest cuts.
– Dr Lowe emphasized that current low levels of inflation were not unprecedented in the period and the RBA has been targeting 2-3 per cent annual consumer price increases. He seems to not be bothered by the fact that the inflation rate can be stuck at such low levels for such a long period of time.
– Factors such as commodity prices which have been seeing a fall, for which he believes is coming to an end, labor and housing market data are major keys.
-As His speech continued, It further indicated that rate cuts are more likely than rate hikes
– During the week we saw a worst than expected employment change data for September.
– Unemployment rate was better than the forecasted even though no change was seen.
You can watch His speech here
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-The green and red long horizontal rectangles are drawn in to show resistance and support lines.
-The green being my support and red being my resistance.
– Bulls look for buy opportunities on the support levels and bears for sell opportunities on resistance levels.