AUD/USD remains on the defensive after weak Aussie construction sector data

  • AUD/USD remains on the back foot near 0.6880 following the release of Australian construction data.
  • The Construction Work Done (Q1), which directly flows into the GDP, missed estimates, strengthening the case for an RBA rate cut in June.

The AUD/USD pair may have a hard time cheering a potential risk reset in the financial markets, as the Construction Work Done (Q1) - a key metric that flows directly into the GDP - has missed estimates.

The amount of construction work contracted 1.9% in the first three months of 2019, the data released by the Australian Bureau of Statistics soon before press time showed. The markets were expecting no change following a 3.1% drop in the final three months of 2018.

The below-forecast GDP input comes a day after the RBA Governor Lowe almost pre-announced a June rate cut, sending the Australian government bond yields to record lows. The data released today will likely boost the probability of the central bank lowering interest rates next month.

The financial markets, however, have fully priced for the RBA to deliver two 25 basis point rate cuts by November. As a result, the AUD may not suffer big losses during the day ahead due to the weaker-than-expected construction data.

The AUD may even pick up a bid if the oversold Chinese Yuan's starts recovering ground, however, the upside will likely be capped by the strengthening case for an RBA rate cut in June.

As of writing, the AUD/USD is trading at 0.6880, representing marginal losses on the day, having hit a low of 0.6873 a few minutes ago.

Pivot levels

    1. R3 0.6984
    2. R2 0.6956
    3. R1 0.6919
  1. PP 0.6892
    1. S1 0.6855
    2. S2 0.6828
    3. S3 0.6791


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD rises above 1.1200 amid some USD weakness

EUR/USD is trading above 1.1200, recovering some of the losses. Earlier, ECB officials expressed concern about global growth President Draghi speaks later. Tension is rising toward the Fed decision.


GBP/USD pressured below 1.2600, Conservative contest in focus

GBP/USD is trading below 1.2600, consolidating the losses seen on Friday after US retail sales beat expectations. The Conservative contest is heating up ahead of tomorrow's second vote.


USD/JPY: wait-and-see continues ahead of Fed

The dollar consolidates its gains against most rival, and scarce data exacerbates the quietness. USD/JPY bullish above 108.90, bearish below 108.10.


Gold: Flirting with daily lows, around 200-hour SMA

A follow-through selling below 200-hour SMA will reinforce the negative outlook and accelerate the slide towards 38.2% Fibo. level support near the $1325 region ahead of Wednesday’s FOMC policy update.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more