AUD: Australian Dollar is growing, amid employment statistics

The Australian Dollar rate continues to grow at the Forex currency market on Thursday amid positive statistics on the Australian employment rate, released this morning.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD, however it is going up, maintaining a buy signal; volumes are increasing. Stochastic Oscillator is still going down in the neutral zone, giving a sell signal.

Forex recommendations: in case of breakdown at the level of 1.0740, the pair will go to 1.0750 and 1.0770. It became known on Thursday that employment rate in Australia rose by 23.4 thousand in June. Unemployment rate remained at the level of 4.9% last month, the same as in May.

Therefore, employment rate in the country has improved more than predicted (+15 thousand), mainly due to a record number of jobs (maximum of three years). This statistics partly relieves concerns about potential slowdown of the economic growth in Australia.The AUD is growing, amid such background, although tension in the external background has been maintained.Vice president of the Reserve Bank of Australia Mr. Low, stressed earlier that special efforts are required to maintain low and stable level of inflation.

According to him previous growth of CPI was attributed mostly to the external factors and influence of the currencies’ exchange rates was insignificant.He also noted that very little unused spare capacity is left in the economy, and the upward pressure on inflation was caused by such facts as labour costs and growing prices for utilities.

At the meeting of the Reserve Bank of Australia yesterday the decision was made to leave interest rate at the previous level of 4.75% per annum and according to the comments of the regulator, moderately restrictive monetary policy is consistent with the actual situation.  According to the RBA, the base rate will rise very gradually and economic growth in 2011 will be slower than expected.

Stevens, the head of the RBA has said in the accompanying statement that Australian economy is gradually recovering after natural disasters, while European debt problems interfere with the process.Market expected that Stevens would give drop a hint at the time when the rate would be raised, however it did not happen. As per the RBA estimates, employment sector of Australia is in the stable state, unemployment rate is described as moderate lately, although it has not affected unemployment rate, which remains at the level of 5%. 

Number of begun construction in Australia increased by 3.1% q/q in Q1, while the forecast had been -0.6%; It became known Number of begun construction in Australia increased by 3.1% q/q in Q1, while the forecast had been -0.6% It became known earlier, that inflation expectations have remained at the level of May at 3.3% q/q in June. At the same time activity index in the manufacturing sector of Australia increased by 5.2 points in June, to the level of 52.9 points. 

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