AUD: Australian Dollar’s rate continues to regain from the lows

At the Forex currency market the Australian Dollar rate continues to rise on Wednesday regaining from the dip to four-week low earlier.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and is moving along the signal line not giving a clear signal. Stochastic Oscillator continues to give a pair buy signal today.

Forex recommendations if current investors’ sentiment will be maintained and in case of breakdown at the level of 1.0050 buyers’ targets will be the levels of 1.0100 and 1.0130.

It became known this morning that consumer confidence index in Australia fell by 5.7% in January against the growth by 0.2% in December, mostly due to the flooding in the country. Flooding in Australia in early January is still number one news: natural disaster in Queensland and the two neighboring states threatens to become the most severe over the past 50 years.  

Prime Minister of Australia Julia Gillard said yesterday that authorities will have to make a difficult choice while preparing a budget for 2012-2013, although the fact of surplus is not questioned. It is clear already that Australian economy in QI can lose from 0.8% to 1% of its GDP.

To date, the situation for the AUD remains unchanged and as follows: as long as overall positive sentiment prevails at the market there cannot be any fears regarding the currency collapse, although its fragility and the ease with which it had been sold earlier should be taken into account. However, if the market receives another portion of negative information the pair AUD/USD can go below the level of 0.9900.

The meeting of the Reserve Bank of Australia is scheduled for 31 January and market will carefully wait for the comments of the RBA head, as the AUD future will depend on them in the short term.  Interest rate in Australia is at the level of 4.75% per annum. RBA meetings in 2011 are scheduled for: 31 January, 28 February, 4 April, 2 may, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.

 

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