Helena Izotova
Australian households keep feeling pressure. According to SQM Research Pty, the growing amount of homes for sale confirms that. The amount grew by 5.45 in March. Melbourne was the frontrunner with a 12% increase.
SQM Research Pty notes that the amount of homes for sale was so big that amid negative sentiments (which are dominating the market) it is rather difficult to single out the key factors of potential recovery.
Analysts expect that if the excessive demand in Australia’s housing market preserves, housing price will inevitably decline in Q2 2012. If so, the RBA will probably be forced to lower the interest rates.
According to , the Australian dollar keeps losing value against its American counterpart. AUDUSD is currently forming a major downswing - А/В of Weekly. A break below 1.0242 will elongate the downswing with another sub-wave А(С)/С.
The closest levels of support are 1.0219, 1.0154, 1.0120. A break above the MF sloping channel and pivot 1.0464 (as shown below) will completed the downtrend.
Helena Izotova
