AUD/USD struggles to extend two-day winning trend despite upbeat Aussie data
- AUD/USD is flatlined near 0.7172, having defended 0.71 earlier this week.
- Australia's home loan data for August bettered estimates.
- Improved risk appetite favors continued rise in the AUD.
AUD/USD is trading in a sideways manner near 0.7172 at press time with the bulls taking a breather, having engineered a 70-pip rally in the past two trading days.
Australia's owner-occupied home values surged by 13.6% month-on-month in August from July's 10.7% rise. Meanwhile, Investment Lending for homes rose 9.3% in August, up from 3.5% in July.
Further, Australia's Financial Stability Review released a few minutes before press time said the Australian business and households are generally in a strong financial position and the financial system has stabilized since the March crash.
So far, however, the upbeat data and RBA's take on the economy and financial system has failed to put a bid under the Aussie dollar.
The positive mood has returned to equity markets on expectations for additional Us fiscal stimulus. As such, the Aussie dollar may print gains during the day ahead.
That said, big gains may remain elusive for some time as the RBA is expected to cut rates to a new record low of 0.10% from 0.25% in November.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
