AUD: Australian Dollar reaches new highs

At the Forex currency market the Australian Dollar rate continues rising on Friday, having reached a new 28-year high the day before – it is now at the level of 1.0374.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues rising, giving a pair buy signal. Volumes are growing. Stochastic Oscillator today stays in the overbought zone, but starts moving away from it aiming at forming sell signal.

Forex recommendations: if bullish sentiment for the pair AUD/USD strengthens the level of 1.0374, yesterday’s high, will become target for buyers for today. Still there is high possibility of correction at levels 1.0320 and 1.0280.

On the threshold of RBA meeting on Monday, April 4, the pair may lose steam, moreover there are serious signals for technical correction, but it is still premature to stake on a rollback.

Markets will take interest in comments of RBA officials about future rate and economic perspectives.

Today the situation in the Australian economy remains unchanged.
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.

 

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