AUD: Bullish interests are obvious for Australian Dollar

At the Forex currency market the Australian Dollar rate goes up on Wednesday despite market sentiments, such as weak macro data, conflict in Koreas and external background.

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD however it started to go up, giving grounds for a pair buy signal. Stochastic Oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: considering that bullish sentiments for the pair will probably intensify, and in case of breakdown at the level of 0.9830, buyers’ targets today will be the levels of 0.9860 and 0.9900.

The following Australian data was released today:
– Volume of complete construction in QIII declined by 2.1% against the growth forecast by 2.0%;
– Leading indicators index CB decreased by 0.1% in September against +0.2% in August.

In general, statistics today did not give rise to optimism. Current growth was caused entirely by the markets participants’ belief that the last events in Ireland and South Korea do not annul global economy recovery.

Chief newsmaker for Australia is China – the country has increased the level of reserve requirements for the banks for the fifth time this year, which suggests that the Celestial Empire intends to raise the level of the interest rate in the future. This is a negative signal for Australia and AUD.
According to the average forecast of economists and analytics the RBA is unlikely to raise interest rate before QIV of 2011. Current level of the interest rate is 4.75% per annum. The Australian Minister of Finance updated its budget forecast this week. Thus, GDP in 2011 is expected to be at the level of 3.5% (growth), in 2012 – 3.75% (unchanged). Net debt will amount to 6.4% by 2012. As for the employment sector- unemployment rate is expected to be at the level of 4.75% in 2011 and at the level of 4.5% in 2012.

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