Forex Blog
Blog-FX.Com

At the Forex currency market the Australian Dollar rate isincreasing on Tuesday, smoothing over yesterday's sales, however short-term trend of trades is still uncertain due to mixed external background.

Forex forecast: MACD indicator for the pair AUD/USD started to move downward from the signal line in the negative area and isgiving a sell signal. Stochastic Oscillator is coming out of the over sold zone and started to shape a weak buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex:in case of break down at the level of 0.9950, the pair will go to 0.9960 and 0.9980.

Australian Central Bank said on Tuesday that the country is fighting off repercussions of European debt crisis with the help of investment boom: minutes of the last meeting of the Reserve Bank of Australia showed that there is no urgent need at the moment in lowering rate and current steps directed to ease monetary policy is sufficient to support economy.

Observers believe that lowering of the rate of RBA in December was just a safe guard against external negative factors. 

According to released statistics,inflationary expectation in Australia reduced to 2.4% in December against preliminary level of 2.5%, as per Melbourne University. MI stated in the comments:"Declinein inflationary expectations reflects consumers' concern about worsening international situation". The decrease in CPI is logically associatedwith slowdown in the rate economic development. GDP in Australia rose by 1.0%q/q (+2.5% y/y) in Q3 against the forecast of growth of 0.8% on quarterlybasis. The data on economic growth in Australia was based on the rise inconsumer expenditures and investments in the mining industry. Note, that earlier Australian authorities have revised forecast of GDP growth downward, to3.5% in 2012. Previous forecast had been at 3.75%.

Tags: