The AUD/USD pair slid sharply below the 0.9200 level early in today's trading after Australia's building approvals data fell in June. From the previous -4.3%, analysts expected the MoM figure to improve to 2.3%. This wasn't the case, however, since it fell to -6.9%. Meanwhile, the YoY figure was even worse. From the previous -3.2% it slid further to -13%, beating expectations of 0%. These figures were the worst Australian buildings permit data of the year.
Private house approvals didn't fare well, either. From May's 2.5%, it fell to -1.1% in June.
The pair is currently trading at 0.9160, with initial resistance seen at 0.9248, followed by 0.9271. Meanwhile, initial support is at 0.9144, followed by 0.9121.
The aussie didn't fare well either against the euro. The EUR/AUD pair broke the 1.4460 barrier early in today's trading, and is currently trading at 1.4462. It has peaked so far at 1.4479. This brought the pair to a 3-year high. The last time the pair reached that level was in August 2010.
Initial resistance for the pair is at 1.4477, followed by 1.4514. Meanwhile, initial support is at 1.4359, followed by 1.4323.
With today's Australian housing data, speculations among analysts and traders alike that a rate cute may be due next week. Australia's interest rate is currently at a record-low 2.75% and is expected to be cut further to 2.5%. If the cut happens, analysts see the AUD/USD to fall to 0.90 or even lower.
This may not be the end of the AUD/USD pair's slide, however, as traders still await data from China later in the week with the official and HSBC Manufacturing PMIs. The Chinese economy has been on a slowdown recent;y, which could affect the aussie further. Despite the slow growth, there are no indicators that China would inject further stimulus into its economy.
For today, it's worth waiting for RBA Glenn Steven's speech at 3:05AM GMT to provide an insight on the Australian economy and the value of the aussie.
Create a FREE account