Forex analytics of LiteForex of 22.10.2010: AUD: Australian Dollar doesn’t move; signals show the growth

On Friday in the currency market (forex) AUD is near the marks of opening however the signals indicate continuation of a growing trend for the currency.

Forex (forex) Forecast: MACD indicator is in the negative area for the pair AUD / USD but it is growing and thus gives a signal to buy the pair. The signal of stochastic oscillator is the same today.

Forex (forex) Recommendations: In order to make sure that the pair continues to grow you need to see a breakdown of the 0.9900 level then the targets of buyers will be 0.9940 and 1.0000.

Today the following data has been published in Australia:

- The import price index rose by 0.7% in the III quarter

On Wednesday it became known that Westpac leading index in Australia dropped to 0.1% m / m in August against the decline by 0.3% in July. However AUD ignored this information.

On Tuesday the text of the RBA meeting report of 5 October was published. The text explains the reasons of the regulator’s decision to keep interest rates unchanged at the level of 4.5%.
Thus according to the RBA at the moment the pause is a symbol of flexibility of monetary policy and the regulator stresses that the decision was thoughtful and measured. Also risks for the economy as well as for the AUD growth were taken into account which ultimately will impact on the inflation.

According to the regulator the inflation will remain in the target range in the short term and will reach the level of 2.75% by the end of the year. The Bank expects inflation near 3% by mid-2012.
The growth of the economy should increase and be strengthened by 4% in two years from the current 3.25%. The market believes that the probability of new rate growth at the next meeting in November is 34%, in December - 52%.

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