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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

AUD: Australian Dollar is weak again

At the Forex currency market the Australian Dollar rate continues descend on Friday that has started earlier.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD however it strived upward, confirming a previous sell signal for the pair. Stochastic oscillator is going down on Friday, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.9810 the pair will go to 0.9770 and 0.9725.

Note that at the moment probability of intensification of the bearish sentiment is not too high, however medium term trend remains downward for the currency.

The following Australian news was released today:

– Import prices in Australia fell by 3.8% on quarterly basis in QIV against the previous growth by 0.7% in QIII;

– Export prices in Australia decreased by 8.1% on quarterly basis in QIV against the growth by 7.8% in QIII.

It became known yesterday, that according to ANZ consumer confidence in Australia amounted to 117 points in January against the level of 112.2 n December. It is interesting that, as per official data, released yesterday consumer confidence index in Australia fell by 5.7% in January against the growth by 0.2% in December, mostly due to the flooding in the country.

The meeting of the Reserve Bank of Australia is scheduled for 31 January and market will carefully wait for the comments of the RBA head, as the AUD future will depend on them in the short term. Interest rate in Australia is at the level of 4.75% per annum. RBA meetings in 2011 are scheduled for: 31 January, 28 February, 4 April, 2 may, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.

Although the AUD exceeded the parity level earlier, today’s decline proves once again our prior view that currency is weak at the moment mainly due to the flooding in Queensland which happened in January. Meanwhile, RBA has not announced yet its assessment of the damage to the economy of the Green Continent.