AUD: Australian Dollar has shifted from slow growth to sluggish sales

At the Forex currency market the Australian Dollar rate goes down on Friday morning terminating slow growth of this week.

Forex forecast: MACD indicator remains in the negative area for the pair AUD/USD, and is growing, giving a buy signal, while volumes are still insignificant. Stochastic Oscillator remains in the overbought zone and its buy signal is fading away; however it tends to go out of the zone, which gives a chance for a buy signal during a day. 

Forex recommendations: in case of breakdown at the level of 1.0690, the pair will go to 1.0670 and 1.065. If downward breakdown does not take place, the pair will continue to go to1.0750.

Macro-economic situation in Australia is improving: statistics released earlier showed that consumer lending in Australia increased by 0.2% m/m in July versus the fall of 0.1% in June. Number of permits to construct in Australia increased by 1.0% m/m in July against the decline of 3.6% m/m in June; Although it is a good indication, it is too early to speak about tendency.

It became known earlier that price index for corporate services in Australia remains unchanged on monthly basis, -0.5% y/y in July against the level of -0.8% y/y in June. In addition, index of leading indicators Conference Board in Australia fell to -0.8% in June; while a month earlier it had amounted to -0.1%. According to the previous data, sales in the primary housing market of Australia fell by 8.0% m/m in July against the decline of 8.7% m/m a month earlier. Presently, it looks more like stabilization of the situation, than a tendency for improvement in the indicator.

Leading indicators index Westpac in Australia increased by 0.2% m/m (+1.6% y/y) in June against the growth of 3.0% y/y in May. However, the rate of decline in the index is minimal, considering that the index has been steadily decreasing since 2010. This index indicates prospects for economic activity for the next 3-9 months and judging by its dynamics, rapid growth can be hardly expected.

The AUD is very sensitive to the changes in investors’ sentiments: balance in the global financial markets is too fragile to make purchases in bulk.