AUD: Australian Dollar came to the local highs again

At the Forex currency market the Australian Dollar rate continues to move in the ascending trend on Wednesday. Worth noting that the currency growth has been observed for the eighth session already with no rollbacks; which increases chances of correction at the slightest deterioration in the external background.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and it goes up, confirming a previous buy signal for the pair. Stochastic oscillator continues to be in the overbought zone on Wednesday.

Forex recommendations: if investors’ bullish sentiments will be maintained, traders’ targets will become the levels of 1.0150 and 1.0175.

The economic situation in Australia has not changed fundamentally; markets were closed yesterday.  The rise in the AUD seems to be normal; however we should not forget that market is thin and currencies’ movement is unpredictable.

Statistics released earlier showed that GDP in Australia increased by 0.2% on quarterly basis in QIII; while analytics had expected the rise by 0.5%; the growth over last quarter positioned as the lowest over the last two years, therefore GDP dynamics seems to be descending. It became known earlier that retail sales in October amounted to-1.1% m/m against +0.1% in September and trade balance surplus in October was $2.625 billion. It also became known earlier that current account balance amounted to -?$7.83 billion in QIII against the forecast of -?$6.60 billion.

The minutes of the RBA meeting of 7 December which were made public earlier, 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.

As a whole, the latest statistics was mixed. Thus, employment rate in November increased by 54.6 thousand jobs in November, at the same time unemployment rate decreased to the level of 5.2% against the previous level of 5.4%. Although retail sales fell by 1.1% m/m in October against +0.1% in September and trade balance surplus in October amounted to $2.625 billion. Balance of current account in QIII amounted to -?$7.83 billion against the forecast of -?$6.60.

 

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