AUD: The fall of the Australian Dollar has continued for the third day

At the Forex currency market the Australian Dollar rate continues its fall, affected by both technical and external factors.

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and goes up, conforming a previous buy signal for the pair. Stochastic oscillator is giving a pair AUD/USD sell signal, being in the neutral zone.

Forex recommendations: if bearish sentiments intensify for the pair, traders’ targets will become the levels of 1.0010 and 0.9980.

As it became known this morning, sales of new houses in Australia reduced by 0.2% m/m in November, as per HIA estimates, against the previous forecast of growth by 6.12% m/m

Information about flooding in Queensland which caused a lot of damage became the factor which triggered the AUD sales yesterday. Market is still awaiting the exact numbers and reaction from RBA to the disaster.

The minutes of the RBA meeting of 7 December which was made public last week, showed that the rate was left unchanged, since the regulator believes that current situation can be described as moderately restrictive, because consumers are cautious, while inflation pressure does not intensify. The interest rate in Australia is now at the level of 4.75% per annum. The document reported that households might continue to rein in spending and in this case it will lead to the short term rise in inflation and also to the lack of aggregate demand in economy.

The RBA meetings in 2011 are scheduled for: 31 January, 28 February, 4 April, 2 may, 6 June, 4 July, 1 August, 5 September, 3 October, 31 October, 5 December.

Current correction for the AUD has become the first successful attempt of the currency to rollback from the local highs; the first two failed in the wake of interest of the players to the high- yielding currencies in late December. It is quite possible that later the AUD will continue moderate consolidation in the short term (if the RBA reaction to the natural disaster will be adequate).