AUD: Australian Dollar continues to grow on Tuesday

At the Forex currency market the Australian Dollar rate continues to go up on Tuesday, while external background encourages interest in risk.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, and is moving along the signal line, not giving any signals. Stochastic Oscillator is increasing in the neutral zone, giving a buy signal.

Forex recommendations: in case of breakdown at the level of 1.0650, the pair will go to 1.0670 and 1.0690. If upward breakdown does not take place, the pair will consolidate at the current levels.

As it became known today, business confidence index NAB in Australia is +6 points in May against the level of 7 points in April.
In addition one of the closest commercial partners of Australia, China has released macro- data today, demonstrating that the rise in inflation rate is still preserved.

Earlier representatives of the Ministry of Finance in Australia said that level of GDP is not the way to determine further movement of economy, although the Ministry still expects further improvement in the country’s economic growth. We would remind that GDP in Australia fell by 1.2% on quarterly basis (+1.0% y/y) in QI, which is the maximum fall in 20 years.

The data released last week showed that Australian economy created fewer jobs than expected; employment rate in Australia increased by 7.8 thousand in May against the forecast of growth by 25 thousand. Unemployment rate remained at the level of 4.9%, the same as in April.

As it was announced earlier inflation in Australia increased by 0.2% m/m (+3.3% y/y), as per TD Securities estimates. It is the weighted average inflation index which is a guideline in decision making for the Bank of Australia, and it is slowing down its growth rate now (in April: +0.3% m/m), indicating that prospects of the increase in the interest rate in the coming months are slipping away.

the Reserve Bank of Australia left interest rate at the previous level of 4.75% per annum and stressed that current course of policy is quite acceptable, which triggered sales of the AUD because it might mean that monetary policy tightening will continue to be suspended in the next few months.

 

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