RBA Monetary Policy Statement, Aussie Weakens - 10.8.2012
The Reserve Bank of Australia at its Monetary Policy Statement earlier today said that high currency value could hurt the economy, also said that prices for Australia’s commodity exports reduced in the last 3 months due to lower global demand. Moreover, it reported that economy has been growing faster than expected in the first half of 2012 and is expected to grow by 3.75% over the 2012 up from a 3% forecast in May's statement and by 3% over 2013 and 2014. Consumers consumption grew stronger until now in 2012, Retail Sales rose in the last 2 quarters to their strongest point in the last 2 years, unemployment remains at relatively low levels and inflation will be around 2.5% for 2012. Concerning risks, the Euro sovereign debt crisis remains the most significant downside risk for the Australian economy. The Aussie on Friday fell from its 4-month highs against the US dollar, from 1.0584 to 1.0496, penetrating intraday support at 1.0558.