AUD: Australian Dollar failed to stay in the positive area

At the Forex currency market the Australian Dollar rate is going down on Friday.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues to go down, giving a pair sell signal. Stochastic oscillator is giving an antipodal signal today, approaching overbought zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0150 the pair will go to 1.0270 and to the local highs at 1.0200. in case of breakdown at the level of 1.0100, traders’ targets will be the levels of 1.0070         and       1.0050.

The situation in the Australian economy has not changed too much. The AUD is still afloat due to the overall optimism; however medium term trend for the currency seems downward.

As it became known earlier, that leading indicator Westpac in Australia was at the level of 0.8% in December against invariable level in November.

The data released on Monday showed that mortgage lending rose by 2.1% on monthly basis in December against the growth by 2.5% m/m in November. In general, the AUD did not pay much attention to this data, and started to increase correction.

The head of the Reserve Bank of Australia Glenn Stevens noted earlier that he expected stabilization of the national economy, due to which, interest rate would remain unchanged for some time. He also said that economic growth of the Australian economy could be higher, that the forecast, despite negative impact of the natural disaster, that befell on the country at the beginning of the year. 

At the same time Stevens believes in the support from strong economies of India, China, the USA, and risks – from the European economies.

According to HSBC observers, the speech of the head of the RBA did not break new ground to the market: Central Bank is satisfied with the pace of economy and mining sector seems to be a driver for the recovery. It is not excluded that discussions about the rate increase will start as soon as the regulator gets familiarized with the CPI index for the QI.

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