AUD: Australian Dollar demonstrates urge to recover

At the Forex currency market the Australian Dollar rate continues to be technically corrected upward on Tuesday after the fall to the lows of four-week. 

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD and is going down confirming a previous sell signal for the pair. Stochastic Oscillator is not giving a clear signal on Tuesday being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0000 the pair will go to 1.0050 and 1.0090. If a breakdown does not take place the pair will continue to consolidate close to the current levels.

Prime Minister of Australia Julia Gillard said today that authorities will have to make a difficult choice while preparing a budget for 2012-2013, although the fact of surplus is not questioned. Flooding in Australia in early January is still number one news: natural disaster in Queensland and the two neighboring states threatens to become the most severe over the past 50 years.

The meeting of the Reserve Bank of Australia is scheduled for 31 January and market will carefully wait for the comments of the RBA head, as the AUD future will depend on them in the short term. Interest rate in Australia is at the level of 4.75% per annum. RBA meetings in 2011 are scheduled for: 31 January, 28 February, 4 April, 2 may, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.

To date, the situation for the AUD is as follows: as long as overall positive sentiment prevails at the market there cannot be any fears regarding the currency collapse, although its fragility and the ease with which it had been sold earlier should be taken into account. However, if the market receives another portion of negative information the pair AUD/USD can go below the level of 0.9900.