AUD: Australian Dollar breaks its own records

At the Forex currency market the Australian Dollar rate continues to grow on Wednesday, reaching local highs again –the peak is now at the level of 1.0605.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and goes up, giving a pair buy signal. Stochastic Oscillator is not giving a clear signal today, coming out of the overbought zone.

Forex recommendations: in case of breakdown at the level of 1.0610 the pair will go to 1.0625. if upward breakdown does not take place the pair will consolidate close to the current levels.

The following Australian data was released today:
– Leading indicators index increased by 4.7% y/y in March against the rise by 4.8% in February;
– Index of prices for import ?rose by 0.9% on quarterly basis in QI.
 Leading indicators index demonstrates good growth in the Australian economy: figures indicate that next year the growth is unlikely to be too high but there will be some growth.

As noted in the meeting of the meeting of 5 April, released by the Reserve Bank of Australia, current monetary politics is quite acceptable, however, at the same time, the regulator expects growth of inflation rate. GDP is expected to be strong in QI. The document clarifies that “main index of CPI can demonstrate growth in March, while GDP will decline more significantly in QI than previously expected. The Committee will carefully consider all these factors”.  

Following the meeting of the Reserve Bank of Australia in April the decision was made to keep current level of the interest rate unchanged at the level of 4.75% per annum – it has been for the fourth time already that the RBA does not dare to continue monetary policy tightening. Judging by recent comments, we should not expect the rise in the interest rate at the next meeting either.

Unemployment rate reduced to 4.9% in March versus the preliminary level of 5.0% and employment rate rose by 37.8 thousand last month against the forecast of increase by 24 thousand. Therefore, strong performance in the employment sector pushed the AUD to go upward, instilling investors with the idea that the RBA can resume monetary tightening policy earlier. On the other hand deficit of trade balance was recorded in the country for the first time since spring 2010 (February -?$205 billion against +A$1.4 billion in January). In addition activity index in the service sector reduced to 46.5 points in March against the value of 48.7 points in February. 

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