AUD: sales of Australian Dollar do not subside
At the Forex currency market the Australian Dollar rate continues to fall on Thursday largely due to negative external background and even morning statistics was not able to improve the situation.
Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and is moving down, giving a sell signal. Stochastic Oscillator started to subside in the neutral zone, giving a similar signal.
Forex recommendations: in case of breakdown at the level of 1.0090, the pair will go to 1.0070 and 1.0050. If downward breakdown does not take place, the pair will consolidate at the current levels.
It became known today that unemployment rate in Australia fell to 5.2% in October against 5.3% a month earlier.
According to the comments of Mr. Lowe, the head of RBA, serious threat to the future of the EU has faded away and world economic conditions are favourable for the development of agriculture in Australia. He believes that domestic demand of Asia is growing up at a good pace and floating rate of the AUD positively affects the cost of raw materials in the agricultural sector.
According to the data released yesterday, consumer sentiment WESTPAC in Australia increased by 6.3% m/m in November, to the level of 103.4 points. According to monetary politician Evans, indicator is now at the highest level since May 2011, however this shall not stop RBA from lowering the rate again at the meeting in February.
Business confidence NAB increased to 2 points in October against preliminary level of -1 points. According to NAB, the growth has been triggered by expectations that the Reserve Bank of Australia will continue to soften monetary policy in the future. It is interesting that business confidence NAB in Q3 amounted to -4 points in Q3; while the index had been at the level of +5 points in Q2. According to estimates of the observers, the level of employment, sales and corporate profit in the country has dropped considerably.
We would remind that last week the Reserve Bank of Australia announced lowering in the interest rate up to 4.50% per annum, by 25 basis points which in general, agreed with expectations. In the follow-up comments the RBA noted that now inflation is being curbed with the help of the high rate of the currency and low demand of population; regulator expects that in 2012 inflation will be at the level of 2-3%. The Bank also recorded deterioration of the conditions in the labour market and decrease in prices for the raw materials. Concerns about developments in Eurozone are still high, and it seems that growth rate of the national economy is going to be moderate. According to RBA, lending rates are now slightly higher than the average level, despite softening of general conditions. It also worth noting, that RBA hinted at further lowering of the rates if general conditions do not improve.
