AUD: Negative factor dominates for Australian Dollar

Australian Dollar continues to be traded without clearly defined direction at the Forex currency market at the beginning of the new week

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and it is going up, confirming a previous buy signal for the pair. Stochastic oscillator is approaching oversold zone, not giving a clear signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9890 the pair will go to 0.9910 and 0.9930. If the level of 0.9832 is exceeded, traders’ target will be the levels of 0.9800 and 0.9780.

Thus, the Australian Dollar has failed to form a definite trend for the third session, being under the pressure from different factors.
Investors continue to express concern about continuation of Korean crisis: it became known on Monday that South Korea began shooting near the island of Yeonpyeong. According to the press, guns volleys have been heard there. We would remind that DPRK has repeatedly stressed that if South Korea would conduct military exercise on Yeonpyeong, the country would open fire on the island in “self-defence”.
In general, it is negative news for the AUD – negative factor prevails at the market now.

Domestic Australian news is far from being positive either. We would remind that according to the statistics released earlier, 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.

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