AUD/USD (current price: 0.7242)
Australian Building Approvals beat expectations meaningfully this morning with a rise of 3%, as the local real estate market is still looking strong despite the huge advance in the last few years. TheCurrent Account Balance came is slightly worse than expected, but the Aussie reacted with a strong early advance as the mostly positive data doesn’t favor another rate cut by the RBA especially as the Fed is preparing to hike its benchmark rate.
Our assessment: AUD/USD rebounded from the 0.715 level again and it’s getting close to the 200-day MA, as traders focus on the 0.735 resistance as a possible target for a correction.
