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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: Sale of the Australian Dollar is suspended

At the Forex currency market the fall of the Australian Dollar rate has slowed down and volume of currency sale has reduced, as the pair has reached local oversold level.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and is moving in parallel to a signal line, not forming a signal yet. Stochastic Oscillator has come into oversold zone today and has not identified a clear signal either.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9985 the pair will go to 0.9970 and 0.9950. If the level of 1.0010 is broken down, buyers’ targets will be the levels of 1.0030 and 1.0050.

Information about flooding in Queensland which caused a lot of damage became the factor which triggered sales of the AUD at the beginning of the week. Market is still awaiting the exact numbers and reaction from RBA on the disaster. Yesterday sales of the AUD intensified under the pressure of the news that Swiss National Bank made a decision not to accept Irish government bonds as collateral for repo transactions. A surge of sales started for the Major pairs due to the fact that credibility to Eurozone was undermined.

The minutes of the RBA meeting of 7 December which was made public last week, showed that the rate was left unchanged, since the regulator believes that current situation can be described as moderately restrictive, because consumers are cautious, while inflation pressure does not intensify. The interest rate in Australia is now at the level of 4.75% per annum. The document reported that households might continue to rein in spending and in this case it will lead to the short term rise in inflation and also to the lack of aggregate demand in economy.

The 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.

According to the data released yesterday, sales of new houses in Australia reduced by 0.2% m/m in November, as per HIA estimates, against the previous forecast of growth by 6.12% m/m. 

 

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