AUD: Australian Dollar reaches for new highs

At the Forex currency market the Australian Dollar rate trades upward on Wednesday – yesterday’s correction failed and aussie tested the new peak – 1.0336.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, having crossed the signal line, giving a pair buy signal. Stochastic Oscillator remains in the overbought zone, giving a pair the same signal.

Forex recommendations: if bullish sentiment for the pair AUD/USD preserves the level of 1.0345 will be the target for buyers today.
Judging by traders’ sentiment it is premature to stake on the pair’s rollback.

The situation in the Australian economy remains unchanged on Wednesday.

We would remind that leading indicator CB increased by 0.1% in January against the growth by 0.7% in December. It is the best indication for the medium term outlook of Australian economy; although it seems that external background overbalances this information. The data released earlier showed that leading indicators Westpac fell by 0.1% m/m in January while the forecast had been +0.8% m/m. It is a moderately negative sign for the Australian economy.

As noted by the representatives of the Bank of Australia earlier that economy of the country has been growing almost at the level of trend, and current moderately restrictive fiscal policy fits the external situation.

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.

The portion of important statistics will come out this week only on Thursday (Retail Sales in February), so the key driver for the pair will be the general external background.

Note that on the threshold of RBA meeting on Monday, April 4, the pair may lose steam.

 

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