Forex Analytics from LiteForex of 01.11.10: AUD: Australian Dollar continues to grow confidently

At the Forex currency market the Australian Dollar rate continues to go up keeping on the growth started last week.  

Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and it goes up which gives a pair buy signal. Stochastic Oscillator has not formed a clear signal.

Forex recommendations: in case of breakdown at the level of 0.9900 the pair will go to 0.9950 and further to 1.0010.
The following Australian data was released today:

– ABS: QIII, houses price index: +0.1% q/q, +11.5% y/y against revised +2.0% q/q, +16.3% y/y in QII.
Thus, the situation in the Australian real estate market is not notable for stability.

According to International Monetary Fund the Reserve Bank of Australian shall raise interest rates as the inflation should chill out and the outlook risks shall be reduced. As the IMF report stated regulator agreed that if the downside risks weakens the policy of the rates will dictate their growth.
The IMF believes that the Australian economy looks quite strong due to the demand in iron ore from China. The IMF report also stressed that the AUD rate seems overrated by 5-15%.

Earlier the minutes of the Reserve Bank of Australia last meeting held on 5 October was released. It explained the reasons which made the regulator keep interest rate unchanged at the level of 4.5%. According to RBA the interval at the moment is a sign of the monetary policy flexibility and the regulator stressed that it was considered and deliberate decision. Risks to the economy as well as risks to the AUD growth were considered which finally will affect inflation. According to the regulator inflation will remain in the target range and will reach the level of 2.75% by the end of the year. By the end of 2012 the Bank expects inflation to be close to 3%.

It became known earlier that basic index of consumer prices in Australia increased by 0.6% in Australia in QIII against the previous level of 0.5%. Consumer prices index increased by 0.7% in QIII against the previous level of 0.6%.

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