AUD: Australian Dollar is being sold at the beginning of new week

The Australian Dollar rate is in the focus of sellers’ attention on Monday after three days of growth last week

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, however it is going down, giving a pair sell signal. Stochastic Oscillator remains in the overbought zone today, confirming a pair buy signal, and creating  prerequisite for a reversal.

Forex recommendations: if the market sentiment maintains and in case of break down at the level of 1.0090 the pair will go to 1.0050 and 1.0010.

No important publication is expected this week, therefore, external background will become the underlying driver for the pair. Situation in the Australian economy remains unchanged. The AUD is still afloat due to the overall optimism; however medium term trend for the currency seems downward.

Earlier the head of the Reserve Bank of Australia Glenn Stevens noted 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 better, than 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 RBA governor 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.

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.

In addition, mortgage lending rose by 2.1% on monthly basis in December against the growth by 2.5% m/m in November.

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