AUD: Australian Dollar continues to go upward
At the Forex currency market the Australian Dollar rate goes upward on Tuesday supported by investor’s sentiment which is in general positive, and calm external background. The AUD hardly reacts to the domestic news, ignoring not only revision of forecasts for the country’s economy, but also the rise in rating by the agency Fitch.
Forex forecast: Earlier MACD indicator for the pair AUD/USD has broken through the signal line from top to bottom and is still traded in the negative area, giving a sell signal. Stochastic Oscillator is going up in the neutral zone and is giving a clear buy signal.
Forex recommendations: in case of breakdown at the level of 0.9980, the pair will go to 0.9990 and 1.0020.
It became known today that Australian authorities have revised forecast for GDP growth in 2012 downward, to 3.5%. Previous forecast was at 3.75%
It also became known that 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.
The data released earlier showed 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.
