AUD/USD chart - Trading View
- AUD/USD hovers around 0.70 handle, edges higher from 3-month lows at 0.6984.
- Aussie dampened following the release of the weak Australia building permits data.
- Australia Building Permits fell 15.5% in March, almost reversing the 19.1% rise seen in February. The markets were expecting a drop of 14%.
- Weaker-than-expected data will likely strengthen the dovish RBA expectations, raising probability of a rate cut on Tuesday.
- The central bank has, over the last few months, signaled readiness to cut rates, if required.
- Technical analysis is bearish. Stochs and RSI sharply lower. Momentum with the bears.
- Price action holds support at 0.6980. Break below will see further weakness.
- Focus on U.S. NFP data for further impetus ahead of RBA rate decision.
Support levels - 0.6980 (trendline), 0.6966 (lower BB), 0.69
Resistance levels - 0.7022 (5-DMA), 0.7072 (converged 23.6% Fib and 21-EMA), 0.71
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
