AUD: Australian Dollar is being corrected

At the Forex currency market the Australian Dollar rate is being corrected on Wednesday amid domestic news and general lock in profits at the markets. In addition, decline in oil prices is a negative factor for the currency.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD and it goes down, giving a pair sell signal. Stochastic Oscillator is giving a similar signal, coming into the neutral zone.

Forex recommendations: in case of breakdown at the level of 0.9800 the pair will go to 0.9770 and 0.9740.

It became known today that mortgage lending in Australia rose by 1.9% in October against the level of +1.3% in September.
Meanwhile, the AUD is under pressure from the news about the U.S. President Mr. Obama who stressed that the country would continue to pursue soft monetary policy. 

As the Deputy Governor of the Reserve Bank of Australia Mr. Lowey stated on Wednesday, current inflation levels do not constitute a menace to the national economy. However, it is not excluded that the rate will go up in the future, although the country needs flexible target range of inflation. 
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.

The level of capital expenditures in Australia increased by 6.2% on quarterly basis in QIII as per Capex estimations against the previous reduction by 4%. Economists’ forecast amounted to +3.1%, which confirmed high level of confidence to the Australian economy.

On Tuesday morning 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. The accompanying statement, summarizing the results of today’s meeting said that the rate of the AUD at Forex this year has consolidated considerably, reflecting high prices of raw products and expectations of the monetary policy progress in Australia. The RBA expects that inflation levels will change slightly in the coming quarters, although in the medium-term, inflation growth is possible. The regulator believes that current monetary policy complies is in full compliance with economic realities.

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