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At the Forex currency market the Australian Dollar rate is not able to continue strengthening, as sentiments in the market are mixed.

Forex forecast: MACD indicator for the pair AUD/USD is in the positive area, volumes are high, however, the indicator is moving along the signal line at the moment, and is not giving a clear signal. Stochastic Oscillator is going down in the neutral zone, giving a signal for moderate sales.

Forex recommendations: in case of breakdown at the level of 1.0680, the pair will go to 1.0670 and 1.0790.

Market is not ready to keep on buying the AUD, despite stability in the AUD, as long as investors are at a crossroad, evaluating multiple external events.

Statistics released earlier showed that lending in the housing sector of Australia rose by 2.4% in December against the forecast of growth of 1.8%. Statistics supported the currency.

Retail sales fell by 0.1% m/m in December against the forecast of growth by 0.2%. According to statistics released earlier, activity index in the manufacturing sector rose by 1.4% in January, up to 51.6 points, 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 1.3 points a month earlier. The index has been growing for the third month in a row, while major growth in activity is associated with households .Nevertheless, AiG noted in the comments, that revival in the index is evident only in three out of nine components.

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 94.7 points, -8.3% m/m in December against the value of 103.4 points in November. At a regular meeting last week, 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 is not going to disregard probability of reducing the rate: Stevens noted that the cost of lending can be revised downward if conditions require so.

Meanwhile, Australian monetary politician Mr.Swan believes that now strong rate of the Australian Dollar represents real threat to local exporters and their incomes.

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