AUD: Australian Dollar rate makes attempt to recover

As the Forex currency market the Australian Dollar rate has begun to grow today after three days of downfall last week.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, confirming a previous buy signal for the pair. Stochastic Oscillator has come out of the overbought zone today and is giving a similar signal.

Forex recommendations: taking into account investors’ sentiment, the AUD can continue to grow. If a breakdown takes place at the level of 1.0075, buyers’ targets will become the levels of 1.0100 and 1.0125. More distant bullish target is at 1.0200.

The data released on Monday showed that mortgage lending rose by 2.1% on monthly basis in December against the growth by 2.5% m/m in November. In general, the AUD did not pay much attention to this data, starting increasing correction.

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 higher, that the forecast, despite negative impact of the natural disaster, that befell on the country at the beginning of the year. 

Stevens believes in the support from strong economies of India, China, the USA, and risks – from the European economies.

According to HSBC observers, speech of the RBA head 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.

Statistics released earlier showed that employment rate in Australia increased by 24 thousand, to the level of 11.44 million in January, which was above the forecast of the economists, who expected the rise by 15 thousand. In addition, unemployment rate remained at the previous level of 5.0%.

 

 

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