AUD: Australian Dollar continues to grow

At the Forex currency market the Australian Dollar rate continues growth that started last night when oil retreated from the two weeks lows.
 

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD, giving ground for a pair buy signal. Stochastic Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: if the current external background is maintained and in case of breakdown at the level of 0.9900, buyers' targets will be the levels of 0.9950 and 1.0000.
 

The situation in the country's economy remains unchanged. Worth noting external news was that oil prices retreated from the two weeks' lows which
encourages the growth of the commodity currencies. It became known yesterday that index of leading indicators remained unchanged in September which indicates some uncertainty in the producers and investors' sentiments after the release of the minutes of the RBA meeting of 2 October, when the interest rate was raised unexpectedly. The document noted that interest rate was raised in order to facilitate the curb in the inflation rise, as mass investments in the mining sector, together with the increase in the employment sector supported the recovery of the national economy. The minutes of meeting emphasized that the balance of risks has shifted and in the current spectrum moderate tightening of the monetary policy seems reasonable.
 

"If we consider monetary policy in a long run, such progress of situation means that there were reasons to raise interest rate. The trend of the constant rise in inflation will most likely remain relevant in the medium term" - said the document. Market believes that the RBA is unlikely to raise interest rate before QIV of 2011. Current level of the interest rate is 4.75% per annum.

The Australian Minister of Finance updated budget forecast this week. Thus, GDP in 2011 is expected to be at the level of 3.5% (growth), in 2012 - 3.75% (unchanged). Net debt will amount to 6.4% by 2012. As for the employment sector- unemployment rate is expected to be at the level of 4.75% in 2011 and at the level of 4.5% in 2012.

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