Forex Blog
Blog-FX.Com

• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

AUD: Australian Dollar determines movement direction, following RBA decision

At the Forex currency market the Australian Dollar rate does not move much on Tuesday, analyzing morning’s statistics and the decision of the Reserve Bank of Australia to keep interest rate unchanged at the level of 4.75%.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues to go up, giving a pair buy signal. Stochastic oscillator remains in the overbought zone today, maintaining a pair buy signal.

Forex recommendations: if current external background is maintained and in case of breakdown at the level of 1.0190, buyers’ targets today will be the levels of 1.0200 and 1.0230.

Thus, at the meeting today, the Reserve Bank of Australia decided to keep interest rate unchanged, at the level of 4.75% per annum, which was not a surprise to the market. In the follow-up comments the RBA mentioned that production is still decreasing in the country due to the elimination of the consequences of the disaster, which befell on Australia at the beginning of the year. The rise in lending is also insignificant. 

Finance Minister of Australia Mr. Swan described the rate decision as “good news”, clarifying that echoes of disaster can affect the result of QI, while fundamentals in Australia remains steady.  

In accordance with the RBA, inflation forecast for this year is in the range of 2-3%.

It was made public yesterday that level of total lending in Australia increased in January by 3.3% per annum, as per estimates of the Reserve bank of Australia, against expectations of the rise by 3.2%.

It became known earlier that lending in the private sector increased by 0.3% m/m last month (preliminary level was +0.2%). Level of capital expenditure in private sector of Australia increased by 1.3% on quarterly basis in QIV last year, reaching the level of A$29.691 billion. Thus, in accordance with the forecast, total index of capital expenditures will be at the level of A$128.93 billion in 2010-2011.

Earlier the head of the Reserve Bank of Australia Glenn Stevens noted that he expected stabilization of   national economy, and consequently, interest rate would remain unchanged for some time. He also said that economic growth of Australian economy could be better, than the forecast despite negative impact of the natural disaster that befell the country at the beginning of the year.  At the same time Stevens believes in the support from strong economies of India, China, the USA, and risks – from the European economies.

[More]
Tags:
Tags Cloud: goods expand unemployment corporate election rare forex trading investors hundredth statistical experts