Forex Blog
Blog-FX.Com

At the Forex currency market the Australian Dollar rate stopped its steady growth that had been observed earlier, and begun to decline under pressure of poor statistics.

Forex forecast: MACD indicator for the pair AUD/USD is in the negative area and is shifting into sideways, not giving a clear signal. Stochastic Oscillator has come into overbought zone and is moving along the signal line, maintaining a buy signal.

Forex recommendations: in case of breakdown at the level of 1.0210, the pair will go to 1.0220 and 1.0240. If negative factors intensify, the pair can go down to 1.0150.

It became known today that retail sales in Australia increased to the highest value of +0.2% m/m over 4 months. In September the index rose by 0.4%, and by 0.6% in August.

This data upset investors who are concerned that such precarious balance in the economy can be disturbed.

Fiscal situation in the country is ambiguous: previous statistics showed that lending in the private sector of Australia increased by 0.2% m/m (+3.5% y/y) in October against the forecast of growth of 0.4% m/m. Previous block of statistics demonstrated that leading indicators index CB in Australia increased by 0.1% m/m in September against a previous decline of 0.2% m/m.  Corporate profit and exports of agricultural products were among the main drivers of the increase in the index. New statistics does not cancel downward pressure, and the main reason for this was caused by changes in prices for securities at the stock market.

It became known earlier that Australian authorities revised forecast for GDP growth in 2012 downward, to 3.5%. Previous forecast was at 3.75%

Rating agency Fitch upgraded rating on Australia’s obligations in foreign currency to the level of AAA from the previous notch of AA+, for the reason of positive revision of the levels of public debts which are now slightly above 26%.

The head of the Reserve Bank of Australia Mr. Stevens stressed earlier that Europe and its leaders have to hurry up to resolve their problems. According to export statistics, Australia and its economy is seriously affected by the slump in global demand.Unemployment rate in Australia decreased to 5.2% in October against 5.3% a month earlier. Business confidence NAB increased to 2 points in October against preliminary level of -1 points. According to NAB, the growth has been triggered by expectations that the Reserve Bank of Australia will continue to soften monetary policy in the future. It is interesting that business confidence NAB in Q3 amounted to -4 points in Q3; while the index had been at the level of +5 points in Q2. According to estimates of the observers, the level of employment, sales and corporate profit in the country has dropped considerably.

Tags: