AUD: Australian Dollar regains strength after a correction

At the Forex currency market the Australian Dollar regains strength after two days’ decline within the bounds of technical correction.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and is rising steadily, giving a pair buy signal. Stochastic Oscillator today declines in the neutral zone, giving a pair sell signal.

Forex recommendations: off the market. But in case of bulls’ sentiment strengthening, the pair may go to 1.0380.

A set of macro-statistics was published in Australia today:
– Housing finance fell by 5.6% m/m in February against the decrease by 4.5% in January;
– Invest housing finance fell by 2.3% m/m in February against the decrease by 6.8% in January.

According to observers, the main reason for weak housing statistics were floods seen in Australia at the beginning of the year.
Macroeconomic background remains weak: trade balance deficit was recorded for the first time since spring 2010 (-?$205 mln in February against +?$1.4 bln in January). Besides, AiG Performance of Service Index decreased to the level of 46.5 points in March against the level of 48.7 points in February.

Thereby macroeconomic background is still of no strong support to aussie.
As a result of RBA meeting the interest rate was left unchanged at the level of 4.75% per annum the day before – the officials didn’t resolve to tighten monetary policy for the fourth time. The decision was in line with expectations and didn’t evoke markets’ response.

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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