Key Points
- The Aussie Dollar after trading as high as 0.7715 against the US Dollar found resistance.
- There was a break below a major channel support at 0.7680 on the hourly chart of AUDUSD.
- Today in Australia, the Building Permits for May 2017 was released by the Australian Bureau of Statistics.
- The outcome was a bit on the lower side, as there was a decline of 5.6%, more than the forecast of -2%.
AUDUSD Technical Analysis
The Aussie Dollar was in a nice uptrend and traded above the 0.7700 handle against the US Dollar. The AUDUSD pair traded as high as 0.7715 where it faced resistance, and moved down below the 0.7700 handle and the 21 hourly simple moving average.
The pair also broke the 23.6% Fib retracement level of the last wave from the 0.7577 low to 0.7715 high. During the downside, there was also a break below a major channel support at 0.7680 on the hourly chart.
The pair may soon decline further and test the 50% Fib retracement level of the last wave from the 0.7577 low to 0.7715 high at 0.7646.
Australian Building Permits
Today in Australia, the Building Permits for May 2017 was released by the Australian Bureau of Statistics. The market was positioned for a decline of 2% in permits compared with the previous month.
The actual result was a bit on the lower side, as there was a decline of 5.6%, more than the forecast of -2%. The report added that the “trend estimate of the value of total building approved rose 0.8% in May and has risen for five months. The value of residential building fell 1.5% and has fallen for three months. The value of non-residential building rose 4.6% and has risen for four months”.
Overall, the AUDUSD might extend its current correction and trade towards the 0.7640 level in the near term.
