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.

Omkar Godbole FXStreet Contributor

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

AUD/USD

Overview
Today last price	0.717
Today Daily Change	0.0005
Today Daily Change %	0.07
Today daily open	0.7165

Trends
Daily SMA20	0.7181
Daily SMA50	0.7206
Daily SMA100	0.7064
Daily SMA200	0.6782

Levels
Previous Daily High	0.7171
Previous Daily Low	0.7122
Previous Weekly High	0.721
Previous Weekly Low	0.7028
Previous Monthly High	0.7414
Previous Monthly Low	0.7004
Daily Fibonacci 38.2%	0.7152
Daily Fibonacci 61.8%	0.7141
Daily Pivot Point S1	0.7134
Daily Pivot Point S2	0.7104
Daily Pivot Point S3	0.7085
Daily Pivot Point R1	0.7183
Daily Pivot Point R2	0.7202
Daily Pivot Point R3	0.7232

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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