Treasurer Wayne Swan believes believes the decision by the Reserve Bank of Australia (RBA) to leave the cash rate on hold reflects the economy's underlying strength and resilience at a time of continued global uncertainty.

The central bank left the cash rate at 4.25 per cent after its monthly board meeting on Tuesday, as widely expected by economists.

Mr Swan said he realised many families are sitting around the kitchen table feeling like they're a long way from easy street, and many businesses are doing it tough.

But he said the cash rate was still 250 basis points lower than the rate the Liberals saddled Australians with when they left office.

The RBA has shown it has policy flexibility to respond if the global situation further deteriorates, Mr Swan said in a statement.

Part of the reason for this is that the government is delivering a responsible fiscal strategy, ensuring that we're not adding to price pressures in the economy.

The housing industry has questioned the wisdom of the Reserve Bank of Australia's (RBA) decision to leave the cash rate unchanged for a further month given the considerable pain some businesses are facing.

width=640

The central bank left the cash rate at 4.25 per cent at its monthly board meeting on Tuesday, as generally expected by economists.

Housing Industry Association chief economist Harley Dale said the expectation of further official interest rate cuts entering 2012 has been replaced by businesses and households counting the potential cost from the possibility of further hikes by retail banks.

The big four banks, and many other lenders, raised their rates last month, despite the RBA leaving the cash rate unchanged.

The fractured state of economic conditions in Australia means there is considerable pain being felt by small and medium-sized businesses, as well as some large businesses, which tends to get lost in a general focus on aggregate economic outcomes, Dr Dale said in a statement.

Against this backdrop a rate cut today would have been the appropriate action to take.

China's Premier Wen Jiabao announced on Monday that the country's growth target was being cut to 7.5 per cent for 2012, after expanding by 9.2 per cent last year and 10.4 per cent in 2010.

It's clear global turmoil is having an effect on our region, but China continues to grow solidly and has a proven capacity to support domestic growth, Mr Swan said in a brief statement on Tuesday.

He said the revised target reflects a move to more sustainable growth, but while there will be challenges along the way, China's growth story still has a long way to run.

We know the weakness in the global economy and acute financial market turmoil in the final months of last year had an impact on our economy and on our budget bottom line, but despite this the Australian economy walks tall in the world, Mr Swan said.

 Treasurer Wayne Swan believes the choice by the Reserve Bank of Australia to leave the money rate on hold reflects the economy's underlying strength and resiliency at a period of continued world doubt. The central bank left the money rate at 4.25 percent after its monthly board meeting on today , as widely anticipated by financial consultants. Mr Swan asserted he realized that this decision is difficult and that many families and businesses were hoping for a rate reduction. But he announced the money rate was still two hundred and fifty basis points lower than the rate the Liberals saddled Australians with when they left office. The RBA has shown it has policy adaptability to retort if the world situation further deteriorates,  Mr. Swan related in a press release.

Part of the cause of this is that the government is delivering a responsible economic plan, making sure that we are not adding to price pressures in the economy.

The housing industry has criticized the decision of the Reserve Bank of Australia's ( RBA ) call to leave the money rate unvaried for another month given the considerable agony some firms are facing.

 The central bank left the money rate at 4.25 % at its monthly board meeting today , as highly anticipated by financial consultants. Housing Industry organization chief financial consultant Harley Dale expounded the expectancy of further official rate of interest cuts entering 2012 has been superseded by firms and homes buyers relying on the these decisions.

width=346

The big four banks, and several other  financial institutions, raised their rates last month, in spite of the RBA leaving the money rate untouched.

 The broke state of industrial conditions in Australia means there's substantial discomfort being felt by small and medium-sized companies in addition to some large corporations, which has a tendency to get lost in a general target total industrial outcomes, Dr Dale announced in a press release. Against this background a rate cut today would've been the right action to take.

Just yesterday, China's Premier Wen Jiabao asserted on Monday the nations' expansion target was being cut to 7.5 percent for 2012, after expanding by 9.2 percent last year and 10.4 % in 2010.

It's clear worldwide chaos has a repercussion on our area, but China continues growing solidly and has a definite capacity to support domestic growth, Mr. Swan related in a short statement. He revealed the revised target reflects a move to more viable expansion, but while there'll be challenges on the way, China's expansion story still has a ways to run. We know the weakness in the world economy and acute finance market chaos in the final months of last year had a result on our economy and on our budget net position, but regardless of this the Australian economy walks tall in the world, Mr. Swan claimed. 

AUD/USD Pivot Points (Time Frame: 1 Day)

 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
1.0470
1.0537
1.0581
1.0648
1.0692
1.0759
1.0803

Fibonacci
1.0537
1.0579
1.0605
1.0648
1.0690
1.0716
1.0759

Camarilla
1.0595
1.0606
1.0616
1.0648
1.0636
1.0646
1.0657

Woodie's
-
1.0531
1.0571
1.0642
1.0681
1.0753
-

DeMark's
-
-
1.0670
1.0636
1.0559
-
-