AUD: Australian Dollar experiences technical correction

At the Forex currency market the Australian Dollar rate continues a correction movement started the day before.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues rising, maintaining a previous buy signal. Stochastic Oscillator today aims at leaving the overbought zone starting to form a sell signal.

Forex recommendations: in case of breakdown at the level of 1.0300 the pair will go to 1.0280 and 1.0275. If the level is not broken down, the pair will consolidate near current levels.

Today’s correction is of no surprise: the pair AUD/USD showed a sound increase during twelve consecutive trading sessions.

As a result of RBA meeting the interest rate was left unchanged at the level of 4.75% per annum today – the officials didn’t resolve to tighten monetary policy for the fourth time. The decision was in line with expectations and didn’t evoke markets’ response.

Morning data from Australia confirmed previous publications and turned out to be weak: firstly, trade balance deficit was recorded for the first time since spring 2010 (-?$205 mln in February against +?$1,4 bln in January). Besides, AiG Performance of Service Index decreased to the level of 46.5 points in March against the level of 48.7 points in February.

Thereby macroeconomic background is still of no strong support to aussie.
As it became known today, ANZ Job Advertisements in Australia increased by 1.3% in March – more than growth by 1.1% seen in February. March data on labour market will be of interest assisting to distinguish whether it is a trend in the sector. But still any conclusions are premature.

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.

 

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