AUD: Large- scale correction has not started for Australian Dollar yet

At the Forex currency market on Thursday, the Australian Dollar rate remains close to the thirty-year highs, which it has reached yesterday.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, and goes up, giving a buy signal. Stochastic Oscillator remains in the overbought zone and maintains a buy signal.

Forex recommendations: in case of breakdown at the level of 1.1040, the pair will try to reach the highs at 1.1063 and further at 1.1075.

If upward breakdown does not take place, the pair will consolidate close o the current levels.Investors expect the data on the volume of lending in the private sector which is scheduled for the release on Friday.Favourable Australian statistics was released yesterday, such as: CPI in Australia increased by 0.9% q/q ((+3.6% y/y) in Q2 against the forecast of growth by 0.7% q/q

. This data turned out above expectations and supported growth in the pair AUD/USD. It is worth noting that business conditions index in Australia increased by 2 points in July, as per NAB estimates, against zero value in May. At the same time, business confidence index NAB amounted to 0 points against the level of +6 points in May, and GDP forecast for the fiscal year of 2011-2012 had been reduced to 1.7%Index of PPI in Australia increased by 0.8% on quarterly basis in Q2 against the growth of 1.2% in Q1.

As it was made public last week business confidence NAB in Australia amounted to +6 points in Q2 against the prior value of +11 points. At the same time index of current conditions rose by 3 points against preliminary +2 points and assessment of business conditions in the three-month term increased by 10 points (forecast had been the growth of 15 points).

According to the NAB estimates the gap between strong and weak sectors of Australia is reaching historic maximum and reminds of the situation in 2000 when slowdown occurred in the weak links of the economic chain.Import price index in Australia rose by 0.8% in Q2 against the forecast of -1.1%. At the same time, export price increased by 6.0% in Q2 against the forecast of +4.5%. Growth in exports last quarter was attributed largely due to the rise in exports of lubricants, mineral oil and also related materials.

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