Forex Analytics from LiteForex of 11.11.10: AUD: Australian Dollar continues to stay in the range

The Australian Dollar is traded downward at the Forex currency market today, although it has been in the range of 1.0133-0.9988 for the third day already.
 

Forex forecast: MACD indicator is in the negative area for the pair AUD/USD and it moves along the signal line, not forming a clear signal. Stochastic
Oscillator is giving a pair sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0050 the pair will go to 1.0070 and 1.0100. If the level of 1.0000 is
exceeded traders' targets will be the levels of 0.9990 and 0.9975. Such long-awaited Australian unemployment statistics for October became a
disappointment due to its weakness; players had not expected too high indicators, however the indices looked very pessimistic.
 

Unemployment rate in Australia increased to 5.4% which became half a year high. Previous level of the rate amounted to 5.1%; market participants
expected to see reduction to 5.0%.

In addition, 29.7 thousand jobs were created in October (forecast +20 thousand) Thus, the increase in the labour share in the country has changed in favour of labour. We shall wait for the authorities' comments in this regard; however it is already clear that chances for the rate increase in the
nearest future are diminishing.

A week earlier the Reserve Bank of Australia decided to raise interest rate to the level of 4.75% per annum against the previous level of 4.5%, which
was a surprise to the market. The regulator noted in the comments that country's economy is vulnerable to external influence and has too little
spare capacity. The risks of inflation still remain and it will make sense to proceed with policy tightening more actively.

The Australian Ministry of Finance has updated budget forecast this week. Thus, GDP in 2011 is expected to be at the level of 3.5% (growth), in 2012 -
3.75% (unchanged). Net debt will amount to 6.4% by 2012.

At that, new budget deficit will be higher by 41.5 billion AUD in 2010-2011. As for the unemployment rate - it is expected to be at the level of 4.75% in
2011 and at the level of 4.5% in 2012.

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