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The Australian Dollar rate continues to be at the gunpoint of sellers at the Forex currency market on Friday, new   statistics from China, the largest trading partner of the Green Continent did not add optimism. 

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and it goes down, giving a pair sell signal. Stochastic oscillator has come into oversold zone and maintains a similar signal.

Forex recommendations: in case of breakdown at the level of 1.0000 traders’ targets will become local lows of 0.9975 and 0.9950.

According to statistics released this morning level of PPI in China increased by 0.8% m/m (+7.2% y/y) in February aganst the growth by 0.9% m/m a month earlier. On the other hand, level of CPI in China rose by 1.2% m/m (+4.9% y/y) in February against the growth by 1.0% m/m in January.

Amid Thursday’s indicators when it became known that  China reported the fall of the trade balance in February by $7.30 billion in February against the forecast of growth by $4.90 billion and preliminary level of +$6.46 billion. Exports in China increased by 2.4% y/y last month against the previous level of 37.7% y/y, imports rose by 19.4% y/y against the forecast of +32.6%- sales of the AUD just increased.
As we noted yesterday, the decline in the main macro-indicators of China, a neighbor and the nearest trading partner, is  unfavorable for the AUD.

Statistics released on Tuesday morning showed that index of business confidence increased to 14 points in February, as per NAB estimates, against the previous 4 points. Thus, after the flood in the state of Queensland earlier this year the level of business confidence has begun to recover.

However, it should be taken into consideration that retail sector, manufacturing industry and construction sector are in the difficult situation, while sectors of recreation and mining industry have been successfully recovering.

Actually, the Australian economy has slowed down – which has been confirmed by statistics and this factor is negative for the AUD.
Interest rate is at the level of 4.75% per annum in Australia now. The meetings of RBA in 2011 will be held on 4 April, 2 May, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.   
 

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