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At the Forex currency market the Australian Dollar surges for new 28-years’ highs.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and is rising, confirming a former buy signal. Stochastic Oscillator today continues rising in the overbought zone, giving a similar signal. 

Forex recommendations: in case of breakup at the level of 1.0585 the pair will go to 1.0600.

Note that the pair is seriously overbought.

Macroeconomic background in Australia remains mixed: on the one hand, Unemployment rate decreased to 4.9% in March against the preliminary level of 5%, Employment increased by 37.8k in March against the forecast of growth by 24k. Thereby strong labour market data supported aussie, having convinced investors of monetary policy tightening to resume earlier.

On the other hand, trade balance deficit was recorded for the first time since spring 2010 (-?$205 mln in February against +?$1.4 bln in January). Besides, AiG Performance of Service Index decreased to the level of 46.5 points in March against the level of 48.7 points in February.

Besides, as became known the day before, Housing finance in Australia fell by 5.6% m/m in February against the decrease by 4.5% in January. According to observers, the main reason for weak housing statistics were floods seen in Australia at the beginning of the year.

As a result of RBA meeting last week the interest rate was left unchanged at the level of 4.75% per annum the day before – the officials didn’t resolve to tighten monetary policy for the fourth time. The decision was in line with expectations and didn’t evoke markets’ response.

The meetings of RBA in 2011 will be held on 4 April, 2 May, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.

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