AUD/USD under pressure on poor domestic data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    AUD/USD has seen heavy selling on the back of poor domestic data, taking the exchange rate from 0.7140 down towards the 0.7220 session low ahead of the RBA monetary policy meeting, with Chinese PMIs also coming up, adding to the risk events.

    Read RBA preview here

    Australian building permits collapse

    Australian bilding approvals for January came in at -7.5% m/m vs -3.0% expected and 9.2% last, while the yearly reading stood at -15.5% y/y vs -8.5% expected and -2.5% last. Meanwhile, Australia's BoP current account balance Q4 came at AUD -21.1 bln vs AUD -20.0 bln exp and AUD -18.1 bln last.

    AUD/USD technicals

    From a technical point of view, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The downward potential seems to be increasing, as in the 1 hour chart, the price stands barely above a mild bullish 20 SMA, whilst the technical indicators turned south around their mid-lines. In the 4 hours chart, the price continues to hold above the 200 EMA, but the technical indicators head south within bearish territory whilst the 20 SMA caps the upside around 0.7185."
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