AUD/USD (current price: 0.7538)
Australian Home Loans declined by a surprisingly high -4.2%, painting a negative picture of the local real estate market, adding to the fears regarding the sustainability of the growth following Thursday’s weak Trade Balance data. The Dollar rally and the weakness of commodities also added to the pressure on the Aussie, and the pair ended with a sizeable loss back below the key 0.76 support/resistance level. The cross is just above the 0.75 support zone and the rising long-term trend line, before the crucial central bank decisions next week.
Our assessment: The pair is still above the 200-day MA despite the prolonged consolidation and the sharp decline of the last few days, but the indicator might be in danger, especially if the current global correction continues.
