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The Australian Dollar rate increases at the Forex currency market on Friday, regaining from sales, which took place this week, in particular, on Thursday.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD, after breaking through the signal line from top to bottom earlier, it goes down gradually, giving a sell signal. Stochastic Oscillator is going down in the neutral zone, giving a weak sell signal.

Forex recommendations: in case of breakdown at the level of 1.0550, the pair will go to 1.0570.

If upward breakdown during the rebound does not take place, the pair will go to target of 1.0490.Recovery of the AUD was supported today by the vice president of the Reserve Bank of Australia Mr. Low, who stressed that special efforts shall be given to maintain low level of inflation. According to him previous growth of CPI was attributed mostly to the external factors and influence of the currencies’ exchange rates was insignificant.He also noted that very little unused spare capacity is left in the economy, and the upward pressure on inflation was caused by such facts as labour costs and growing price for utilities.

Yesterday the Australian Dollar reacted negatively to the statistics of its nearest commercial partnerInterest rate of the Reserve Bank of Australia is at the level of 4.75% per annum now; next meeting is scheduled for 5 July and Westpac believes that the rise in the rates at this meeting is hardly probable. According to the data released last week, consumer confidence index Westpac in Australia fell by 2.6% m/m, to 101.2 points in June against preliminary forecast of decline by 1.3%, to 103.9 points.

In addition, a number of begun construction in Australia increased by 3.1% q/q in Q1, while the forecast had been -0.6%. It became known yesterday, that inflation expectations have remained at the level of May at 3.3% q/q in June. It became known in the middle of the week that leading indicator index WestpacMelbourne increased to 0.6 points, up to the level of 280.6 points, which indicates growth of 2.7% on annual basis and proves stability of economic outlook for the next 3-9 months.

Minutes of the last meeting of the Reserve Bank of Australia was released earlier; the document stressed that inflationary prospect in the country suggests further tightening; however recent macro-data does not encourage the rise in the rates. “Current inflation rate is partly due to the deflationary effects of the rise in interest rate and slowdown in the increase of expenditure for labour force,” stressed the document. The AUD fell amid such background, since investors did not like uncertainty in the views of the RBA.

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