The AUD/USD currency pair trades continue on sidelines due to the disappointing housing data. The AUD/USD currency pair continues trading sharply bearish 0.6889, due to domestic housing data and trade agreement news. Australian Building Approvals came out at -1.2%, below the 0.2% forecast.
The Aussie continued hitting the bearish market with the 7th consecutive days decline in a row. Besides the Reserve Bank of Australia’s dovish bias, it is the decreasing expectations of a U.S. Federal Reserve extreme rate-cut that is mostly adding the downward pressure on the AUD/USD.
On Wednesday, investors will get the chance to respond to the latest quarterly Consumer Inflation report. It is anticipated to record expansion of 0.5%, up from 0.0%. This report could determine how competitive the Reserve Bank of Australia (RBA) will be with future rate cuts.
On the other side, the geopolitical uncertainties and tensions regarding Iran are further weighing on the market sentiment.
USD – CB Consumer Confidence
The Conference Board’s monthly survey of consumers has dropped from the highs, and as of June, now stands at 121.5. The newest figure for August will likely show a rise to 125.2, in line with recent upbeat jobs numbers.
Today the positive CB consumer confidence may drive further selling in AUD/USD, while a figure below 121.5 is likely to underpin Aussie.
AUD/USD – Technical Outlook
According to the daily swing chart, the main trend of AUD/USD remains bearish. Taking out yesterday’s low at .6895 will indicate that selling pressure is getting more powerful. The subsequent potential downside target is the main bottom at .6832.
The main trend will change to up on a move through .7082. This is highly unlikely. However, the AUD/USD is down seven sessions from its last main top which puts it inside the window of time for a potentially bullish closing price reversal bottom.
The main range is .6832 to .7082. The AUD/USD is trading on the weak side of its retracement zone at .6928 to .6957. This zone is resistance.
Daily Support and Resistance
Pivot Point 0.6902
AUD/USD – Trade Tips
Consider staying bearish below 0.6900 with a stop loss over 0.6920 and target of around 0.6865 and 0.6840 today. All the best!