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The Australian Dollar goes down at the Forex currency market on Monday after reaching new highs at 1.1014 and due to the decline in interest to the high -yielding currencies at the beginning of the week.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and goes up due to high trading volumes, giving a pair buy signal. Stochastic Oscillator remains in the overbought zone today, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 1.1014 the pair will test new highs at 1.1020. If upward breakdown does not take place the pair will consolidate close to the current levels.

According to the data released today house prices in Australia reduced by 1.7% on quarterly basis in QI. Unemployment rate fell to 4.9% in March against preliminary level of 5.0% and employment rate increased to 37.8 thousand last month against the forecast of growth by 24 thousand. Therefore, strong performance in the employment sector helped the AUD to go up, convincing investors that monetary tightening process can resume earlier. In addition deficit of trade balance has been recorded in the country for the first time since spring 2010 (February -?$205 billion against +A$1.4 billion in January). In addition activity index in the service sector reduced to 46.5 points in March against the value of 48.7 points in February.

It became known on Wednesday that CPI in Australia increased by 1.6% on quarterly basis (+3.3% y/y) in QI. Therefore, inflation in the Green Continent has reached five-year highs; natural disasters have triggered the rise in costs for food and other consumption goods for people. In addition, commodity prices at the global markets remain high, because tension in the Middle East does not abate.

Kevin Rood, Minister of Foreign Affairs of Australia said earlier that RBA has no plans to carry out currency intervention, although national currency is considerably overvalued. 

As it became known earlier, index of import prices increased by 0.9% on quarterly basis in QI. Index of leading indicators rose by 4.7% y/y in March against the rise by 4.8% in February. It is a good result taking into account that the Reserve Bank of Australia keeps interest rate unchanged for a long time. Leading indicators index demonstrates good growth in the Australian economy: indicators show that growth is unlikely to be too high next year; however there will be some growth. 

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