AUD: Australian Dollar remains in the range

At the Forex currency market the Australian Dollar rate is traded without a clearly defined trend, remaining in the range of 0.9950-1.0035 for the third day already.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, however it is going down, giving a pair sell signal. Stochastic oscillator has turned around from the oversold zone and is giving a pair buy signal.

Forex recommendations: off the market

Feasible event scenario at Forex: in case of breakdown at the level of 1.0075 the pair will go to 1.0095 and 1.0230. If an upward breakdown will not take place, the pair will continue to consolidate within the range.

The situation in the Australian economy has remained mostly unchanged. The AUD is still afloat due to the overall optimism; however medium term trend for the currency seems downward.

As it became known yesterday, that leading indicator Westpac in Australia was at the level of 0.8% in December against invariable level in November.

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, and started to increase correction.

The head of the Reserve Bank of Australia Glenn Stevens noted earlier 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. 

At the same time Stevens believes in the support from strong economies of India, China, the USA, and risks – from the European economies. According to HSBC observers, the speech of the head of the RBA 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.

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