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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 stands still

The Australian Dollar rate stands still at the Forex currency market today, awaiting new signal to determine movement direction. The AUD has already regained from yesterday’s domestic news and is waiting for new drivers now.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and is going up a little, giving a pair buy signal. Stochastic Oscillator has come out of the oversold zone today and is giving a pair sell signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0200 the pair will go to 1.0230 and 1.0250/60. If the level of 1.0135 is briken down, traders’ targets will be the levels of 1.0100 and 1.0080.

It became known earlier that GDP in Australia rose by 0.7% q/q (+2.7% y/y) in QIV against the forecast of +0.6% q/q (+2.8% y/y). Economy was able to strengthen before flooding that struck the Green Continent, which was followed by tropical cyclone.

Finance Minister of Australia Mr. Swan described the rate decision as “good news”, clarifying that echoes of disaster can affect the result of QI, while fundamentals in Australia remains steady. In accordance with the RBA, inflation forecast for this year is in the range of 2-3%.

It became known earlier that the level of total lending in Australia increased in January by 3.3% per annum, as per estimates of the Reserve bank of Australia, against expectations of the rise by 3.2%.

Earlier the head of the Reserve Bank of Australia Glenn Stevens noted that he expected stabilization of   national economy, and consequently, interest rate would remain unchanged for some time. He also said that economic growth of Australian economy could be better, than the forecast despite negative impact of the natural disaster that befell the country at the beginning of the year.  At the same time Stevens believes in the support from strong economies of India, China, the USA, and risks – from the European economies.

Worth noting that the level of capital expenditure in private sector of Australia increased by 1.3% on quarterly basis in QIV last year, reaching the level of A$29.691 billion. Thus, in accordance with the forecast, total index of capital expenditures will be at the level of A$128.93 billion in 2010-2011.

The Reserve Bank of Australia decided to keep interest rate unchanged, at the level of 4.75% per annum, which was not a surprise to the market. In the follow-up comments the RBA mentioned that production is still decreasing in the country due to the elimination of the consequences of the disaster, which befell on Australia at the beginning of the year. The rise in lending is also insignificant.

 

 
 

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