AUD: Australian Dollar continues to rise steadily
At the Forex currency market the Australian Dollar rate continues to rise steadily – the pair AUD/USD moves in the rising channel for the eight consecutive trading session.
Forex forecast: MACD indicator is in the negative area for the pair AUD/USD, but is rising giving a pair buy signal. Stochastic Oscillator remains in the overbought zone, also maintaining a buy signal.
Forex recommendations: if buyers’ sentiment for the pair AUD/USD preserves the levels of 1.0296 and 1.0320 will be the target for bulls today.
The AUD ignores weak statistics released last week as well as conditions for the technical rollback – the pair exceeded the level of 1.0227, moving higher 1.0296.
We would remind that 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.
This week important statistics will be released only on Thursday (Retail sales in February), so the general external background will remain key driver for the pair.
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