Vlad Demochko
Monthly research conducted by National Australia Bank (NAB) shows that June’s business confidence index declined by 6 pts down to 0.0. The decline is mainly caused by the weak recovery of mining in Queensland after a flood, as well as by a stronger national currency and low retail sales. There is a considerable gap between different sectors of Australia’s economy: the mining sector is showing some recovery while other sectors are showing some weakness.
According to NAB exerts, the main reason is the strong Australian Dollar, which supports the country’s mining sector but at the same time hinders consumer spending, which in its turn undermines the confidence in Australia’s construction sector, production and trade (both retail and wholesale).
FOREX.
According to the Department of Masterforex-V TS, after coming out of the bearish sloping channel AUDUSD completed the bearish ABC retracement of Daily and formed an upswing of H8 with a “moment of truth” against it. If the price overcomes the resistance level at 1,0789, it will form a bullish FZR H8, which will indicate the continuation of the long-term (major) uptrend. May’s high will become the closest target. If the upward scenario is canceled the “Hound of the Baskervilles” pattern (of Daily2 or higher) will continue the retracement. In this case 1,0390 will become the closest level of support.
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Vlad Demochko
