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


Today last price 0.777
Today Daily Change -0.0003
Today Daily Change % -0.04%
Today daily open 0.7773
Daily SMA20 0.7761
Daily SMA50 0.7719
Daily SMA100 0.7506
Daily SMA200 0.7292
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



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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD attempts recovery above 1.1950 as US dollar bounce fizzles

EUR/USD is attempting a recovery above 1.1950 ahead of the European open, as the US dollar’s rebound falters amid persistent weakness in the Treasury yields. Easing concerns over EU's covid vaccines rollout and dovish Fed expectations underpin the spot.


GBP/USD recovers to 1.3850 as UK’s optimism offsets USD bounce

GBP/USD recovers to 1.3850, picking up fresh bids heading into the London open. The cheers the UK’s advantage of faster vaccinations and unlock guidelines to shrug off the US dollar’s bounce off late the lowest since late March.


Gold’s path of least resistance appears north, $1798 in sight

Gold is consolidating last week’s rally to two-month highs of $1784, in the wake of the persistent weakness in the US Treasury yields across the curve.  However, gold bulls remain motivated, as China steps up bullion imports.

Gold News

Bitcoin network hash rate drop may not have caused BTC price crash

China’s prominent regions for Bitcoin mining have suffered an electrical grid blackout, causing Bitcoin’s hash rate to decline. Bitcoin price crashed over the weekend, coinciding with the drop of the network’s hash rate.

Read more

S&P 500 Week Ahead: Banks beat the street, COIN booms as funds flow to ETFs

Equity markets continue to remain bolstered from all sides as the macro environment produces strong numbers, earnings continue to smash estimates and inflation concerns take a back seat. Earnings season switches from bank stocks to reopening plays.

Read more