AUD/USD technical analysis: 50-day EMA questions recent pullback, upbeat Aussie data
|- Housing and consumer inflation data help Australian Dollar (AUD) buyers to extend the previous pullback.
- A sustained break of 50-day EMA can propel the Aussie pair towards 38.2% Fibonacci retracement and current month high.
Despite bouncing off 0.6910 and witnessing positive Australian economics, the AUD/USD pair still trades below the 50-day exponential moving average (EMA) as it takes the bids near 0.6960 during early Thursday morning in Asia.
While 3.2% reading of the Consumer Inflation Expectations (July) versus 3.3% prior can be considered as a negative point, 0.0% Home Loans for May month against -0.6% forecast and -1.7% reading of the Investment Lending for Home (May) compared to -2.2% earlier favors the AUD strength.
Though, a daily closing beyond 50-day EMA level of 0.6974 becomes necessary for the pair to aim for 38.2% Fibonacci retracement of January to June downpour, at 0.7010, followed by the current month high near 0.7050.
In a case where prices rally beyond 0.7050, 23-week long descending trend-line at 0.7105 becomes the key for buyers to watch.
On the flip side, a sustained break of recent lows surrounding 0.6910 highlights the importance of late-May lows close to 0.6860.
Additionally, pair’s declines beneath 0.6860 might not refrain from challenging June lows adjacent to 0.6830.
AUD/USD daily chart
Trend: Pullback expected
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