AUD: Australian Dollar has been growing for the third consecutive session

At the Forex currency market the Australian Dollar rate continues to grow on Monday.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD; however it is going up, giving grounds for a pair buy signal. Stochastic Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: there is an indication that bullish sentiments will go on and if the current trend will be maintained, the pair AUD/USD will go to 0.9890 and 0.9920. If a breakdown will not take place the pair will consolidate in the previous price range.

The situation in Australia still remains unchanged. The main factor that now can seriously affect the position of the AUD is the situation in China, where reserve requirements for the banks had been increased by the sixth times per year last week.

GDP in Australia increased by 0.2% on quarterly basis in QIII; while analytics had expected the rise by 0.5%; the growth over last quarter positioned as the lowest over the last two years, therefore GDP dynamics seems to be descending. However, the Australian Dollar rate can resume the decline in the medium term because investors’ concern about problems in Eurozone is still strong and the Euro is still too weak.

It became known earlier that retail sales in October amounted to-1.1% m/m against +0.1% in September and trade balance surplus in October was $2.625 billion. It also became known earlier that current account balance amounted to -?$7.83 billion in QIII against the forecast of -?$6.60 billion. All these factors will buck against the AUD.

However the data released later outbalanced existing negativism. Employment rate in Australia demonstrates vigorous growth which is a clear indication of a good recovery rate of the domestic economy. According to the data released today employment rate rose by 54.6 thousand jobs in November; while unemployment rate declined to the level of 5.2% against the previous level of 5.4%.

Last week a regular meeting of the Reserve Bank of Australia was held, where the regulator decided to keep current interest rate unchanged, at the level of 4.75% per annum. In general it agreed with the market expectations.

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