AUD/USD: Sidelined despite horrible Aussie Building Permits


  • AUD/USD is in stasis near 0.770 after Monday's 0.8% rise.
  • Australia's Building Permits tanked in January, while Current Account surplus rose in Q4.
  • RBA could jawbone the AUD, which recently hit a three-year high.

The dismal Aussie Building Permits data released soon before press time fails to elicit a bearish reaction from the Aussie dollar, leaving AUD/USD sidelined near 0.7770. 

Approvals tanked 19.4% month-on-month in January – a big drop compared to the 3% contraction expected versus December's 10.9%.

Another data revealed Australia's Current Account surplus, or the difference between capital inflows and capital reduction, widened to A$ 14.5 billion in the fourth quarter, from the preceding quarter's A$ 10 billion, beating the forecast of A$13.1 billion. 

AUD/USD's sideways churn near 0.7770 indicates that both bulls and the bears are unwilling to lead the price action ahead of the Reserve Bank of Australia's (RBA) rate decision due at 3:30 GMT.

The central bank is expected to leave interest rates unchanged and express concerns regarding the recent rise in bond yields and the Aussie dollar's strength. 

"Just as rising yields threaten the recovery, so does a strong currency. AUD/USD hit a three-year high last week, and verbal intervention would be an easy way to halt the rise," BK Asset Management's Kathy Lien noted in her daily analysis. 

Australia's 10-year bond yield rose roughly 80 basis points to 1.91% in February, tracking the US yields higher. The surge in global government bond yields destabilized the equity markets last week, sending the dollar higher on Thursday and Friday. 

The RBA took on the bond markets on Monday, buying $4 billion worth of bonds, marking a big rise from the usual purchases worth $2 billion in a bid to stem the rally in yields. The 10-year yield fell by over 20 basis points on Monday. 

Technical levels

AUD/USD

Overview
Today last price 0.777
Today Daily Change -0.0003
Today Daily Change % -0.04%
Today daily open 0.7773
 
Trends
Daily SMA20 0.7761
Daily SMA50 0.7719
Daily SMA100 0.7506
Daily SMA200 0.7292
 
Levels
Previous Daily High 0.7787
Previous Daily Low 0.7706
Previous Weekly High 0.8008
Previous Weekly Low 0.7692
Previous Monthly High 0.8008
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7756
Daily Fibonacci 61.8% 0.7737
Daily Pivot Point S1 0.7723
Daily Pivot Point S2 0.7674
Daily Pivot Point S3 0.7642
Daily Pivot Point R1 0.7805
Daily Pivot Point R2 0.7837
Daily Pivot Point R3 0.7886

 

 

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