Commerzbank clarifies the challenges facing the Australian Reserve Bank.

Volkmar Bauer, a foreign exchange analyst at Commerzbank, commented on his expectations regarding the economic situation in Australia in light of the Reserve Bank of Australia's meeting results released on Tuesday morning.

In this context, the economic analyst stated that the Reserve Bank of Australia sees the economy facing risks on both sides, and that the central bank is aware of the uncertainty arising from international conditions.

Specifically, the sharp change in U.S. economic policy and the size of the stimulus package yet to be announced by the Chinese government were cited as sources of uncertainty, with the economic analyst noting that the risks have somewhat materialized in both cases.

Bauer continued, pointing out that the outcome of the U.S. elections and the nominations of the elected president currently support the likelihood of adopting somewhat unconventional economic policies.

On the other hand, the Chinese stimulus package has been somewhat disappointing, especially concerning the housing market, but he emphasized the strength of the Australian economy despite international conditions.

Although growth has been somewhat disappointing recently, the labor market remains tight, employment growth is still strong, and wage growth is good in turn, which is positive for the position of the Reserve Bank of Australia.