AUD: Sales of Australian Dollar only jumped up on Tuesday

Sales of the Australian Dollar jumped up at the Forex currency market on Tuesday – traders are not ready to take risks now, considering a factor of instability in the Middle East which is still a topic number one

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD, however it continues to go down, maintaining a pair sell signal. Stochastic Oscillator has come out of the overbought zone and is giving a similar signal. 

Forex recommendations: if current sentiment is maintained in the market, traders’ targets on Tuesday will become the levels of 0.9970 and 0.9930.

The AUD has no support from macro-statistics today: the level of business confidence in Australia declined by 5 points in QIV against the level of 9 points earlier. However the pressure from external background is getting stronger and the currency is being sold, due to investors’ withdrawal from risks.

No important publications is expected this week, therefore, external background will become the underlying driver for the pair. Situation in the Australian economy remains unchanged. The AUD is still afloat due to the overall optimism; however medium term trend for the currency seems downward. 

Earlier the head of the Reserve Bank of Australia Glenn Stevens noted that he expected stabilization of the national economy, due to which, interest rate would remain unchanged for some time. He also said that economic growth of the Australian economy could be better, than the forecast, despite negative impact of the natural disaster that befell on the country at the beginning of the year. At the same time Stevens believes in the support from strong economies of India, China, the USA, and risks – from the European economies.

According to HSBC observers, the speech of the RBA governor did not contain any fresh news for the market: Central Bank is satisfied with the pace of economy and mining sector seems to be an activator for the recovery. It is not excluded that discussions about the rate increase will start as soon as the regulator gets familiarized with the CPI index for the QI.

As it became known earlier, that leading indicator Westpac in Australia was at the level of 0.8% in December against invariable level in November.

 

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