AUDUSD trades 0.45% lower at 0.6863 after the Housing finance demand surged 3.2% in September. China Trade Balance CNY came in at 301.38B above expectations of 220.2B in October.
RBA has already cut rates three times and sounded cautiously optimistic, pointed out that a turning point appears to have been reached.
The pair failed earlier this week to break above the three-month highs at 0.6929 for fourth day in arow; The bullish momentum gained traction after the pair pierced above the 100-day moving average getting a boost from the interest rate cut from Fed and the positive news on the US-China trade negotiations.
Australia’s growth has been cut for full-year 2019 and next year as the IMF predicts a weak year for the global economy. World Economic Outlook, predicts Australia to grow at 1.7% in 2019, down from a predicted 2.1%.
AUDUSD Technical Levels
AUDUSD consolidates below three-month highs between the 100 and 200-day moving averages. AUDUSD short term outlook is neutral now as the rebound from 10-year lows stalled at 0.6929.
On the downside, first support for AUDUSD stands at 0.6864 the today’s low and then at 0.6848 the 100-day moving average, while more bids will emerge at 0.6809 the 50-day moving average. A sustained move below will open the way for a visit down to 10-year lows. Investors might initiate short positions if the pair close convincingly below the 100-day moving average.
On the flip side, first resistance stands at 0.6905 today’s top and then at 0.6929 the high from October 31st above that the next hurdle stands at 0.6945 the 200-day moving average.