AUD: Correction started for Australian Dollar

At the Forex currency market the Australian Dollar rate started to decline on Wednesday, following steady growth yesterday. 

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD, however it goes up, confirming a previous buy signal for the pair. Stochastic oscillator has come out of the overbought zone today and is giving an antipodal signal.

Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 0.9900 the pair will go to 0.9870 and 0.9810. If the level of 0.9980 is exceeded, buyers’ targets will be the levels of 1.0000 and 1.0030.

Macro-economic environment is tranquil for Australia today – new data was not published and reduction today can be regarded as a technical correction.

Moreover, investors do not risk coming into highly profitable pairs on Wednesday amid aggravation of problems in Eurozone.
Earlier Australian statistics, which was published this week turned out to be weak.

Thus, 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.

At the moment the Australian Dollar rate can resume the decline in the medium term because investors’ concern about problems in Eurozone along with the weakness of the Euro and instability of Australian economy will bring pressure.
 

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