At the Forex currency market the Australian Dollar rate began to decline in the mid-week under the pressure of the information released yesterday that National Bank of China had raised interest rate for credits and loans by 25 basis points.
Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues to grow steadily, confirming high volumes. Stochastic Oscillator began to reverse, coming out of the overbought zone and going down, which gives a pair sell signal.
Forex recommendations: if current bearish conditions will maintain traders’ targets will become the levels of 1.0075 and 1.0050/45.
Today’s statistics showed that levels of consumer confidence Westpac in Australia increased by 1.9%, to 106.6 against the fall by 5.7& in January, to 104.6 points. The indicator is interesting because January had been extremely difficult for Australian economy (first of all, the country had been devastated by flooding, after that - by the tropical hurricane “Yassi”). According to preliminary estimates the damage caused by the disaster is estimated at A$20 milliard. Market believes that the rate will be increased after the pause at the level of 5.0% by the end QII, 2011.
At the moment the interest rate in Australia is at 4.75% per annum. Market thinks that Reserve Bank of Australia has many reasons why the regulator should restrain from the rise in rates and inflation is not the most impressive of them. Inflation levels are expected to grow, as flooding has brought losses to the farmers and their farms by an average of A$1 billion.
According to the data released last week, index of business activity in the construction sector of Australia fell to 40.2 in January against preliminary level of 43.8. The effect of the last natural disaster is obvious in the economy of Australia.