AUDUSD trades 0.24% lower at 0.6711 after Australia Building Permits (month over month) came in at -9.7%, below forecasts of 0% in July while the yearly reading was down to -28.5% in July from previous -25.6%. Reserve Bank of Australia’s Governor Lowe noticed that monetary policy can push up asset prices but can’t support and deliver medium-term growth.
On the technical side, the pair breached the lower band of the recent trading range three days ago, as the continuation rectangular pattern signals lower levels for Aussie. Bearish technical picture and dismal macro data opening the way for a visit down to 0.6688 the low from August 26th. Bears looking strong for the medium term. On the downside, first support now stands 0.67 psychological level and then at 0.6688 August 28th low, a level that if breached will enhance the slide toward the 0.66 round figure. On the upside, immediate resistance stands at 0.6752 yesterday’s high while more offers will emerge at 0.6817 the high from August 13 and then at 0.6884 the 50 day moving average.