AUDUSD Under Bearish Pressure

Key Highlights

  • Aussie Dollar managed to climb higher recently against the US Dollar, but sellers managed to defend the upside.
  • AUDUSD remains under bearish pressure and it is likely to continue trading lower.
  • Australian Building Permits released by the Australian Bureau of Statistics declined by 8.2% in June 2015, which was a lot more than the market expected.
  • Australian export price index fell by 4.4% in Q2 2015, more than the forecast of -4%.

Australian Building Permits

Earlier during the Asian session, the Australian Building Permits report, which shows the number of permits for new construction projects was released by the Australian Bureau of Statistics. The market was expecting a decrease of 0.8% in June 2015, compared with the preceding month. However, the outcome was below the forecast, as the Australian Building Permits declined by 8.2%.

AU BP

When we consider the yearly change, then the Australian Building Permits increased by 8.6% in June 2015, compared with June 2014. This was also a lot lower when compared with the last revised reading of 18.3%.

The report highlighted that the “trend estimate of the value of total building approved fell 0.9% in June and has fallen for four months. The value of residential building fell 1.0% and has fallen for four months. The value of non-residential building fell 0.6% and has fallen for six months.”

There was a minor downside reaction in AUDUSD after the release.

AUDUSD Technical Analysis

The AUDUSD pair traded higher Intraday after setting a short-term bottom around 0.7250. However, the pair found hurdles around an important bearish trend line on the hourly chart, which stalled gains in the near term. Moreover, the 200 hourly simple moving average is also aligned with the highlighted trend line, which is adding to the bearish pressure on the pair. However, on the other hand, the 100 hourly SMA is providing support on the downside.

AUDUSD

As long as the pair is below the stated trend line and resistance area the chances of it trading lower are a lot more. A break and close above the 200 hourly SMA might set the tone for more gains in the near term. On the downside, the 100 hourly SMA could continue to act as a catalyst moving ahead.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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