Perhaps sliding past market analyses last week amid the
hullabaloo over European interest rates and US Non-Farm Payrolls (
) was the official rate policy statement by the Reserve Bank of
). Not affecting currency values in any extreme way, the RBA
nevertheless made a remark which could eventually force a
reevaluation by traders investing in the Australian dollar
The remark was in connection with the RBA's inflation forecast
for the upcoming two years. The potential reevaluation these
remarks could foster was a hint that the inflation forecast could
see an adjustment that may lead to an interest rate hike during the
second half of 2011.
The initial inflation forecast had a rate hike potentially
coming at the start of 2012, but fears of runaway inflation
grabbing hold may have possibly sped up this monetary tightening
schedule. Analysts have commented that inflation in Australia is
gaining momentum alongside the expected growth in the labor market
as the mining industry boosts output in the months ahead.
The RBA has therefore had to adjust its stance towards its
monetary and credit policies
, trying to get a rate adjustment priced in ahead of schedule.
Forex traders may see the potential from this adjustment as they
view the AUD/USD in their online trading platforms with Forexyard
to see the recent uptick in value.
The Aussie initially gained ground last Friday as traders
largely fled riskier assets, but moved into the AUD as part of this
upward adjustment sparked from Friday's RBA rate statement. If this
momentum can hold, forex traders may continue seeing some upward
mobility in the AUD's pairs and crosses.