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Old 02-10-2017, 10:28 AM   Nav to Top 
Superforex
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AUD/CAD: short review and forecast

Since the beginning of the year, the Australian dollar began a steady growth, which led to the formation of a new uptrend. it was unexpected by many investors who think the value of the AUD is overvalued, taking into account recession in the Australian economy, in particular the decreasing of the business activity index to 5, and decreasing of the share's prices of mining companies in Australia. Mainly, the reason for the growth of the Australian currency was the canadian dollar, which during this time did not exert any pressure on the AUD. Canada's economy is stable, though it doesn't show some growth. But unstable oil market, the risks for further decreasing in oil prices and the USD rates make pressure on the CAD value.
Despite worries about overvalued Australian dollar, it looks better enough and keeps growing. This confirmed by the Reserve Bank of Australia, who believes the slowdown in growth is a temporary and expects an improvement in economic indicators. So at the meeting, the RBA left interest rates unchanged, thereby maintaining the currency at a high level. Also, positively impact has had information about the growth of China's economy and it has good perspectives for increasing export volumes.
At this time, the oscillators MACD and Stochastics are neutral. The most optimal in this situation is to open the deals on the trend, upon medium-term trading.

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