Building Permits Disappointment Send AUDUSD Below 0.69

AUDUSD trades 0.11 percent lower at 0.6892 making fresh monthly lows  after Australia Building Permits (year over year) came in at -25.6%, below expectations of -24.3% in June, while the Building Permits (month over month) came in at -1.2%, below expectations of -1% in June. The previous week  Governor Lowe of Reserve Bank of Australia in a speech said that it’s reasonable’ to expect lower rates for longer time and RBA is prepared to ease policy further if needed.  FOMC policy decision tomorrow, at which it is expected to cut interest rates by 25 basis points will drive the pair for the rest of the week.

AUDUSD continues south for eighth consecutive trading session as the fundamental data do not support a move higher after recent Aussie data disappoints. On the downside first support now stands at 0.6876 the low from June 20, a level that if breached will enhance the slide toward the 0.6830 the low from June 18th. On the upside immediate resistance stands at 0.6907 the 50 hour moving average while more offers will emerge at 0.6958 the 50 day moving average. The short term momentum for AUDUSD is clearly bearish for now and a move to lower levels looks possible.Don’t miss a beat! Follow us on Twitter.