AUD: Australian Dollar makes attempts to recover

At the Forex currency market the Australian Dollar rate tries to recover today after three days of decline. The pair AUD/USD still stays in the range of 1.0074-1.0186.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues to fall, giving a pair buy signal. Stochastic Oscillator goes down in the neutral zone, giving a pair sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0145 the pair will go to 1.0170 and 1.0190. If the level of 1.0100 is exceeded, traders’ targets will become the levels of 1.0090 and 1.0050.

Statistics, released on Tuesday morning, showed that index of business confidence increased to 14 points in February, as per NAB estimates, against the previous 4 points. Thus, after the flood in the state of Queensland earlier this year, the level of business confidence begun to recover.

However, it should be taken into consideration that retail sector, manufacturing industry and construction sector are in the difficult situation, while sectors of recreation and mining industry have been  successfully recovering.

Interest rate is at the level of 4.75% per annum in Australia now. The meetings of RBA in 2011 will be held on 4 April, 2 May, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.  

Finance Minister of Australia Mr. Swan described the rate decision as “good news”, clarifying that echoes of disaster can affect the result of QI, while fundamentals in Australia remains steady. In accordance with the RBA, inflation forecast for this year is in the range of 2-3%.
GDP in Australia rose by 0.7% q/q (+2.7% y/y) in QIV against the forecast of +0.6% q/q (+2.8% y/y). The economy had been able to strengthen before the flooding that struck the Green Continent, which was followed by tropical cyclone. 

 
 

[More]