Forex Blog
Blog-FX.Com

At the Forex currency market the Australian Dollar rate is traded slightly upward on Thursday morning after the fall in the Asian session. Low interest to risk and thin market are not favourable to growth of the AUD rate.

Forex forecast: MACD indicator for the pair AUD/USD is moving along the signal line in the negative area and is giving a clear signal. Stochastic Oscillator goes down in the neutral zone and is giving a sell signal. 

Forex recommendations: in case of breakdown at the level of 1.0080, the pair will go to 1.0070 and 1.0050. 

Volatility in the high-yielding currencies remain high; however interest to risk is not there among investors who are still in the market a few days before New Year.

It was noted by Australian Central Bank on this week, that the country has been fighting against repercussions of Europeandebt crisis with the help of investment boom: minutes of the last meeting ofthe Reserve Bank of Australia showed that there is no urgent need at the momen tin lowering rate and current steps directed to ease monetary policy is sufficient to support economy. 

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

Last week statistics showed that leading indicator index Westpac-MI in Australia increased to 282.2 points (+0.4 points) in October. The data reflects the pace of economic activity in the next 3-9months; index has increased on monthly basis, however, it went down on annual basis (2.6% against 2.8% earlier). This is a signal that business activity inthe country may decline in the coming months.

Unemployment rate increased to 5.3% in November against the forecast of 5.2%. Employment rate fell by 6 thousand against the growth of 16.8 thousand earlier. The indicator reflects the impact of European debt problems on the Australian economy. Retail sales in Australiain creased to the minimum value of +0.2% m/m over 4 months in October. In September the index rose by 0.4%, and by 0.6% in August. 

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. This data is positive at the moment ascurrent conditions have stabilized; however levels of business confidence are still unvaried. It became known earlier that trade balance in Australia fell to+A$1.60 billion in October against expectations of +A$2.0 billion. Slump in the global demand has played its part here as well.

Tags: