AUD: Australian Dollar continues to rise steadily

At the Forex currency market the Australian Dollar rate continues to rise on Monday, following the fall in the middle of the last week.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD and continues to go down. Stochastic Oscillator is giving a pair buy signal today, going upward in the neutral zone.

Forex recommendations: if current investors sentiment is maintained and in case of breakdown at the level of 1.0050 the pair will go to 1.0070 and 1.0090.

It became known last week that 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.
The data released earlier showed that leading indicators Westpac decreased by 0.1% m/m in January; while the forecast was +0.8% m/m. It is a moderately negative signal for the Australian economy.

Representatives of the Bank of Australia noted 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. 

In addition, according to the RBA, shortage of cash in Australia now amounts to ?$1.437 billion.

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.  

No important Australian macro-economic statistics is going to be published this week; therefore movement direction will be determined by external background and domestic news for the pair AUD/USD.

 

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