The Australian dollar fluctuated lower during the Asian session to see its second straight session rebounding from its highest since the beginning of the month against the US dollar, following the developments and economical data on the Australian economy and on the eve of the data expected Today by the US economy, the largest economy in the world, which includes the launch of the meeting of the Federal Open Market Committee in Washington.
As of 02:48 GMT, the AUD/USD fell 0.03% to $0.7102 compared to the opening levels of $0.7104 after a high of $0.7111 and a low of $0.7090.
We have followed the speech of Assistant Governor of the Reserve Bank of Australia, Christopher Kent, under the title "Bonds and Standards" at the KangaNews DCM Summit, Sydney, this came before we saw the meeting of the Reserve Bank of Australia held on the fifth of this month, which approved the makers of monetary policy, setting the interest rate at 1.50% for the 29th consecutive meeting, which was then agreed.
Central Bank of Australia governor, Philip Lowe, noted that the interest rates would support job creation and move forward with the goal regarding inflation, adding that achieving the goal of full employment is crucial because the labor market is central to the expected recovery of inflation, he also explained that labor market tightening would increase wage growth in some way that should boost household income and expenditure and provide a balanced weight to the recent fall in house prices.
Lowe also said that the recovery in household spending in Australia is expected to lead to inflationary growth, of course, and that inflationary pressures could be rebounding for other reasons, considering that the chances of this happening at the moment is low, which suggests that inflation growth depends currently on the strength of the labor market, which reflects a good performance other than other economical indicators that reflect a more softer image.
As well as noting that markets are looking for the reveal of the growth data of the fourth quarter, noting that the growth data of the second half of last year, 2018, were clearly less than the first half, reflecting a global image of many countries, including Australia, adding that there is a tension of growing data from the strong labor market and more resilient GDP data and that the Australian Central is devoting extensive resources to understand this tension.
We also followed the Australian economy reveal of housing market data with the release of the household price index, which showed a widening of the decline to 2.4% compared to 1.5% in the third quarter, worse than expectations of a broad decline to 1.9%. In the same context, the annual reading of the same index also widened to 5.1% from 1.9% in the previous quarter's reading, also worse than expectations for a 5.0% decline.
Also, it's expected that Federal Reserve monetary policy makers will keep interest rates between 2.25% and 2.50% at the March 19-20 meeting and move forward to cut bond repurchases by $ 50 billion per month amid expectations that the Reserve Bank Federal interest rates once this year announced plans to stop cutting back on bond purchases.
Investors are also looking to FOMC members to announce their forecasts of growth and unemployment as well as inflation and future federal funds for the next three years ahead of Fed Chairman Jerome Powell's recent press conference on the Fed's determination to be patient and monitor economic data before resuming The tightening of monetary policy.