AUD: Correction still continues for Australian Dollar

At the Forex currency market the Austrian Dollar rate continues to decline at the end of the week.

Forex forecast: MACD indicator is in the positive area for the pair and continues to go up slightly, confirming a previous buy signal for the pair. Stochastic Oscillator is giving a pair sell signal, declining and being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0110 the pair will go to 1.0050 and 1.0010. If a downward breakdown does not take place, the pair will continue to consolidate close to the current levels.

News content can be described as quite; sale in the AUD is caused by the possible decrease in the interest rate in New Zealand at the next meeting. 

GDP in Australia rose by 0.7% q/q (+2.7% y/y) in QIV against the forecast of +0.6% q/q (+2.8% y/y). Economy was able to strengthen before flooding that struck the Green Continent, which was followed by tropical cyclone. Finance Minister of Australia Mr. Swan described the rate decision as “good news”, clarifying that echoes of disaster can affect the result of QI, while fundamentals in Australia remains steady. In accordance with the RBA, inflation forecast for this year is in the range of 2-3%.

It became known earlier that the level of total lending in Australia increased in January by 3.3% per annum, as per estimates of the Reserve bank of Australia, against expectations of the rise by 3.2%.

 Currently, interest rate is at the level of 4.75% per annum in Australia. The meetings of RBA in 2011 will be held on 4 April, 2 May, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.  

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