Meanwhile in the U.S. of A, the FOMC meeting on Wednesday will reveal the Fed’s interest rate decision followed by the Durable Goods report on Thursday, and the Q2 GDP assessment on Friday. Whew! As recent economic data suggests that the Fed’s 2% inflation target is at risk, Yellen has gone on record to say the Fed is continually reassessing the course of U.S. monetary policy.
Even with the USD in decline, many economists are doubting that the Aussie can hold up at this exchange rate against the greenback for much longer. With a slowdown in credit growth in China, an impending downturn in the Chinese economy is expected which may drop the price of a key Australian commodity: iron ore. If that happens, many professionals believe the Aussie will retreat back toward $.70.