AUD: Australian Dollar continues to consolidate at the end of the week

At the Forex currency market the Australian Dollar rate continues to be traded upward today.

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

Forex recommendations: if buyers’ sentiment for the pair AUD/USD preserves the levels of 1.0230 and new local highs of 1.0250 will be the target for the pair today.

The AUD ignores weak statistics released yesterday: leading indicator CB increased by 0.1% in January against the growth by 0.7% in December. It is the best indication for the medium term outlook of Australian economy; although it seems that external background overbalances this information. The data released earlier showed that leading indicators Westpac fell by 0.1% m/m in January while the forecast had been +0.8% m/m. It is a moderately negative sign for the Australian economy.

AS noted by the representatives of the Bank of Australia earlier that economy of the country has been growing almost at the level of trend, and current moderately restrictive fiscal policy fits the external situation. 

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.  

Note, as it became known earlier, the Reserve Bank of Australia sold ?$414 billion in the market in February – the action was aimed at weakening the position of the AUD, says the RBA monthly bulletin. In addition the RBA bought ?$464 billion from foreign banks in February.
There are conditions now for the technical rollback in the pair.

 

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