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At the Forex currency market the Australian Dollar rate is traded upward on Tuesday, due to decisions made by the Reserve Bank of Australia and positive comments made by the regulator.

Forex forecast: MACD indicator for the pair AUD/USD is going up in the positive area, while volumes are high, and is giving a buy signal. Stochastic Oscillator remains in the overbought zone and is giving a similar signal.

Forex recommendations: in case of breakdown at the level of 1.0820, the pair will go to 1.0830 and 1.0850. Correction is highly possible.

So, at the meeting today, the Reserve Bank of Australia decided to keep interest rate at the level of 4.25% per annum, while market predicted downward revision of the index by 25 basis points.

According to comments made by RBA, domestic economy is stable and resists external negative pressure from Europe quite well. The head of RBA Mr. Stevens believes that situation in the European economy has slightly improved since December, although sentiments remain very pessimistic.

It is logical that the regulator does not abandon possibility of lowering the rate: Stevens noted that the cost of lending can be revised downward if conditions require so.

The AUD reacted instantly, soaring up to six month highs,

According to Australian monetary politician Mr. Swan, strong Australian Dollar represents real threat to the local exporters and their income. Note that yesterday the rate of the pair AUD/USD has reached the highs of August 2011.

Retail sales fell by 0.1% m/m in December against the forecast of 0.2%. According to statistics released earlier, activity index in the manufacturing sector rose by 1.4% in January, up to 51.6points, as per AI GROUP estimates. Aggregate activity index Aig in the service sector increased to 51.9 points in January (+2.9 points) against growth of 1.3points a month earlier. The index has been growing for the third month in a row, while major growth in activity is related to households. Nevertheless, AiG noted in the comments that revival in the index took place only in three out of nine components of the index. Leading indicators index CB in Australia decreased by 0.3% in November against the fall of 0.6% earlier. Import price index increased by 2.5% q/q in Q4 against zero change in Q3. Meanwhile, private sector lending rose by 0.3% in December, the same as in November. Inflation in the country showed zero growth in Q4 against the forecast of growth of 0.4% on quarterly basis. Consumer sentiment index Westpac-MI fell to94.7 points, -8.3% m/m in December against the value of 103.4 points in November. Business confidence index NAB in Australia increased to 1 point in November against zero level in October.

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