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At the Forex currency market the Australian Dollar rate is traded upward on Wednesday morning: currency received support from the domestic statistics.

Forex forecast: MACD indicator for the pair AUD/USD has merged with the signal line and is not giving a signal. Stochastic Oscillator has pushed away of the oversold zone; however has not shaped a clear signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0600, the pair will go to 1.0620 and 1.0650. If upward breakdown does not take place, the pair will consolidate at the current levels.

Statistics released today showed that GDP in Australia rose by 1.2% q/q (+1.4% y/y) in Q2 against the forecast of growth by 1.0% on quarterly basis. The data was above expectations; however uncertainty in the external economy is very high, which prevents growth in the exchange rate.

According to the governor of the RBA Mr. Glen Stevens, as long as markets are panic-stricken it is better to keep rates steady.

held yesterday, the Reserve Bank of Australia decided to leave the cash rate unchanged at 4.75% per annum, as expected. In the follow-up comments the head of the RBA Glen Stevens noted that “medium term economic prospects look worse that it had been expected a few months earlier. Global financial markets demonstrated severe instability”. The situation with the rate seems logical amid such background.  “The RBA Committee decided that the most viable option will be to maintain current course of the monetary policy. At the next meeting the RBA will continue to carefully analyze both the prospects for economic growth and inflation in Australia, –said Stevens.

The pause in the policy of monetary tightening, maintained by the RBA, has been going on for 9 months already.

Statistics released on Tuesday showed that mortgage lending in Australia increased by 1.0% m/m in July against the growth of 0.6% m/m in June. In addition, current account balance in Australia amounted to -A$7.4 billion in Q2 against the level of -A$11.1 billion in Q1.

Leading indicators index Westpac in Australia increased by 0.2% m/m (+1.6% y/y) in June against the growth of 3.0% y/y in May. However, the rate of decline in the index is minimal, considering that the index has been steadily decreasing since 2010. This index indicates prospects for economic activity for the next 3-9 months and judging by its dynamics, rapid growth can be hardly expected.

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