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At the Forex currency market the Australian Dollar rate is traded smoothly with no deviations to either direction.

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 has come back to the overbought zone and is giving a similar signal.

Forex recommendations: in case of breakdown at the level of 1.0700, the pair will go to 1.0710 and 1.0730. .  Correction is highly possible.

Data released this morning showed that aggregate activity index Aig in the service sector increased to 51.9 points in January (+2.9 points) against growth of 1.3 points 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. Statistics released today showed that activity index in the manufacturing sector of Australia rose by 1.4% in January, to 51.6 points, as per AI GROUP estimates.

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 to 94.7points, -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. Employment rate in November fell by 7.6 thousand against initial estimate of -6.3 thousand.

At the same time, unemployment rate remained at the previous level of 5.3%. We would remind that economists expected the rise of jobs by 10 thousand. According to Australian monetary politician Mr.Swan, strong Australian Dollar represents real threat to the local exporters and their income. Note that today the rate of the pair AUD/USD has reached the highs of August 2011.

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