AUD: Australian Dollar is being corrected after new highs

At the Forex currency market the Australian Dollar rate goes down after reaching a new peak yesterday.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and it rises, giving a pair buy signal. Stochastic Oscillator remains in the overbought zone, giving a similar signal.

Forex recommendations: considering external background- off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0700 the pair will go to 1.0650. If a breakdown does not take place the pair will consolidate close to the current levels.

The data released earlier showed that producer prices increased above the forecast in QI (+1.2% on quarterly basis against the growth by 1.0% in QIV, 2010), indicating accelerated recovery of the local economy.
With the help of support from stable national economic situation, the Australian Dollar continues to be an interesting tool for investors; on Thursday it has reached the highest level since 1983, at 1.0776.

Kevin Rood, Minister of Foreign Affairs of Australia said yesterday that RBA has no plans to carry out currency intervention, although national currency is significantly overvalued. 

Unemployment rate reduced to 4.9% in March versus the preliminary level of 5.0% and employment rate rose by 37.8 thousand last month against the forecast of increase by 24 thousand. Therefore, strong performance in the employment sector pushed the AUD to go upward, instilling investors with the idea that the RBA can resume monetary tightening policy earlier. On the other hand deficit of trade balance was recorded in the country for the first time since spring 2010 (February -?$205 billion against +A$1.4 billion in January). In addition activity index in the service sector reduced to 46.5 points in March against the value of 48.7 points in February.

It became known in the middle of the week that index of prices for import increased by 0.9% on quarterly basis in QI. Leading indicators index rose by 4.7% y/y in March against the rise by 4.8% in February. It is a good result taking into account that the Reserve Bank of Australia keeps interest rate unchanged for a long time. Leading indicators index demonstrates good growth in the Australian economy: figures show that growth is unlikely to be too high next year; however there will be some growth. 

 
 

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