AUD/USD clings to 0.6900 as Aussie Building Permits, trade negotiation details awaited
|- Aussie trades remain on sidelines ahead of the second-tier housing data, key trade event.
- Market sentiment remains subdued as negotiations in Beijing keep being an uncertain catalyst.
- Australia’s June month Building Permits will be the first to kick off the busy day.
Given the domestic housing data and trade negotiation headlines being lined up for publishing, AUD/USD traders prefer remaining on sidelines around 0.6900 during early Tuesday morning in Asia.
The Aussie pair continued its downward trajectory with a seventh back-to-back decline on Monday. While dovish bias of the Reserve Bank of Australia (RBA) and recently diminishing chances of the US Federal Reserve’s extreme rate-cut have mostly led the quote down, investor’s caution ahead of the key data/event could also be considered as a reason for latest weakness in momentum. It should also be noted that the geopolitical tension concerning Iran is an additional burden on market sentiment. Global growth of risk barometer, the US 10-year treasury yield, remains on a back foot while losing nearly 2 basis points to 2.063% by the press time.
On the economic calendar, June month Australian Building Permits will be the first to grab traders’ attention whereas developments surrounding the two-day long US-China trade discussions in Beijing and the US data will entertain markets afterward.
The Aussie housing market gauge is expected to offer more reasons for the RBA to remain bearish as the statistic is expected to decline to 24.3% from 19.6% YoY while also shrinking 1.0% against 0.7% previous expansion.
Latest headlines from the US and China have mostly failed to extend previous optimism surrounding the trade negotiations in Beijing.
The line of data from the US is rather longer and includes Personal Income and Spending figures for June, S&P/Case Shiller Home Price Indices (YoY) for May, Consumer Confidence and Pending Home Sales (June).
Technical Analysis
Not only May-end lows surrounding 0.6900 but mid-June tops, close to 0.6880, and the previous month low near to 0.6830 also seem key supports for the Aussie pair. On the upside, early-July bottom near 0.6910 can act as immediate resistance for the pair ahead of highlighting 0.6955 and 0.69714 resistance-level comprising 21-day exponential moving average (EMA).
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