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At the Forex currency market the Australian Dollar rate continues to grow amid favourable market environment.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD; however reduction in volume indicates possibility of reversal. Stochastic Oscillator has come into overbought zone today and maintains a pair buy signal.

Forex recommendations: in case of breakdown at the level of 1.0090 buyers’ targets will be the levels of 1.0110 and 1.0150.

The situation in the Australian economy remains almost unchanged. No important Australian macro-economic statistics is going to be published this week; therefore movement direction will be determined by external background and domestic news for the pair AUD/USD.

It became known last week that the Reserve Bank of Australia sold ?$414 billion in the market in February – the action was aimed at weakening the position of the AUD, says the RBA monthly bulletin. In addition the RBA bought ?$464 billion from foreign banks in February.
The data released earlier showed that leading indicators Westpac decreased by 0.1% m/m in January; while the forecast was +0.8% m/m. It is a moderately negative signal for the Australian economy.

Representatives of the Bank of Australia noted earlier that economy of the country has been growing almost at the level of trend, and current moderately restrictive fiscal policy fits the external situation. 

Interest rate is at the level of 4.75% per annum in Australia now. 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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