AUD: Moderately positive factor distinguishes Australian Dollar on Friday

At the Forex currency market the Australian Dollar rate is traded slightly upward on Friday while investors have adopted wait and see attitude.

Forex forecast: MACD indicator for the pair AUD/USD is in the negative area and shifted into sideways movement, not giving a clear signal. Stochastic Oscillator has come into overbought zone and is moving along the signal line, maintaining a buy signal.

Forex recommendations: in case of breakdown at the level of 1.0270, the pair will go to 1.0280 and 1.0290. If negative factors intensify, the pair can go down to 1.0250 and 1.0230.

Macro-economic background remains stable in Australia.

Financial situation in the country is ambiguous: previous statistics showed that lending in the private sector of Australia increased by 0.2% m/m (+3.5% y/y) in October against the forecast of growth of 0.4% m/m. Previous block of statistics demonstrated that leading indicators index CB in Australia increased by 0.1% m/m in September against a previous decline of 0.2% m/m.  Corporate profit and exports of agricultural products were among the main drivers of the increase in the index. New statistics does not cancel downward pressure, and the main reason for this was caused by changes in prices for securities at the stock market.

It became known earlier that Australian authorities revised GDP growth forecast downward, to 3.5% in 2012.  Previously, forecast had been at 3.75%

This week, rating agency Fitch upgraded  rating of Australia’s obligations in foreign currency to the level of AAA from the previous notch  AA+, due to positive revision public debts levels, which are now slightly above 26%.

The head of the Reserve Bank of Australia Mr. Stevens stressed earlier that Europe and its leaders have to hurry up to resolve their problems. According to export statistics, Australia and its economy is seriously affected by the slump in global demand. It became known yesterday that retail sales in Australia increased to the highest value of +0.2% m/m over 4 months. In September the index rose by 0.4%, and by 0.6% in August. This data upset investors who are concerned that such precarious balance in the economy can be disturbed.