AUD: Sale of Australian Dollar is still ongoing

The Australian Dollar rate continues to weaken at the Forex currency market on Monday morning.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, is moving along the signal line, not giving a clear signal. Stochastic Oscillator is going down in the neutral zone, giving a sell signal.

Forex recommendations: in case of breakdown at the level of 1.0580, the pair will go to 1.0550 and 1.0530. If downward breakdown does not take place, the pair will consolidate close to the current levels.

The economic situation in Australia remains almost unchanged on Monday morning.

At the meeting of the Reserve Bank of Australia yesterday the decision was made to leave interest rate at previous level of 4.75% per annum and according to the comments of the regulator, moderately restrictive monetary policy is consistent with the actual situation.  According to the RBA, the base rate will rise very gradually and economic growth in 2011 will be slower than expected. Stevens, the head of the RBA has said in the accompanying statement that Australian economy is gradually recovering after natural disasters, while European debt problems interfere with the process. Market expected that Stevens would drop a hint at the time when the rate would be raised, however it did not happen. As per the RBA estimates, employment sector of Australia is in the stable state, unemployment rate is described as moderate lately, although it has not affected unemployment rate, which remains at the level of 5%. 

Vice president of the Reserve Bank of Australia Mr. Low stressed earlier that special efforts are required to maintain low and stable level of inflation. According to him previous growth of CPI was attributed mostly to the external factors and influence of the currencies’ exchange rates was insignificant.

He also noted that very little unused spare capacity is left in the economy, and the upward pressure on inflation was caused by such facts as labour costs and growing prices for utilities.

As the data released last week showed, business conditions index in Australia increased by 2 points in Jule, 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%

According to the data released yesterday, consumer inflationary expectations MI in Australia rose to 3.4% in July against the level of 3.3% in June. The AUD has not reacted strongly to the data, focusing its attention on the Chinese statistics and forecasts.

 

 

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