AUD: Australian Dollar tends to rise

At the Forex currency market the Australian Dollar rate continues to grow steadily for the sixth consecutive session, remaining above parity level in pairing with the USD.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues to consolidate which confirms a previous buy signal for the pair. Stochastic oscillator remains in the oversold zone today and is not giving a signal.

Forex recommendations: in case of breakdown at the level of 1.0045 the pair will go to 1.0060 and 1.0080. More distant goal is 1.0100.

It is worth noting that market remains thin in advance of the New Year. Trading floors in Australia are closed today.

Statistics released earlier showed that GDP in Australia increased by 0.2% on quarterly basis in QIII; while analytics had expected the rise by 0.5%; the growth over last quarter positioned as the lowest over the last two years, therefore GDP dynamics seems to be descending. It became known earlier that retail sales in October amounted to-1.1% m/m against +0.1% in September and trade balance surplus in October was $2.625 billion. It also became known earlier that current account balance amounted to -?$7.83 billion in QIII against the forecast of -?$6.60 billion.

The minutes of the RBA meeting of 7 December which were made public earlier, showed that the rate was left unchanged, since the regulator believes that current situation can be described as moderately restrictive, because consumers are cautious, while inflation pressure does not intensify. The interest rate in Australia is now at the level of 4.75% per annum. 

The document reported that households might continue to rein in spending and in this case it will lead to the short term rise in inflation and also to the lack of aggregate demand in economy.

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