AUD/USD drops to 1H 50-MA on weak Aussie data
|- AUD/USD tests 1-hour 50-MA support.
- Aussie house prices declined in the third quarter.
- NAB business conditions dropped.
The AUD/USD pair dropped to 1-hour 50-MA level of 0.7519 after the data released in Australia showed the house price index dropped 0.20 percent q/q in the third quarter vs. expected print of 0.5 percent.
Meanwhile, the National Australia Bank's (NAB) business confidence index fell 9 points to +12 index points in November. Business confidence also retreated from +9 (last month) to +6 in November.
The weak data is boding well for the AUD bears, although the spot is still holding above the 1-hour 50-MA support. Ahead in the day, the pair may dip below 0.75 levels if the US producer price index (PPI) betters estimates.
AUD/USD Technical Levels
Jim Langlands from FX Charts prefers trading from the short side. He writes, "selling into rallies is still preferred but we could easily see a run back to the 100 WMA (0.7550) which could act as a magnate over the next 24 hours Beyond there would find sellers at 0.7565/70. On the downside, there will be plenty of work to do at 0.7500, below which, 0.7470/80 area will be strong, so taking some profit on shorts and looking to resell into a rally may be a more medium-term plan."
Valeria Bednarik, Chief Analyst at FXStreet, says, "in the 4 hours chart, the price remains well below a bearish 20 SMA, currently at 0.7580, while the Momentum indicator consolidates within the oversold territory, as the RSI is also flat at 33. The main support is now the 0.7500 figure, with a break below it exposing 0.7450, and with a weekly close below it favoring a continued slide towards 0.7250, the next big static support."
Support levels: 0.7500 0.7450 0.7420
Resistance levels: 0.7570 0.7600 0.7640
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