- Summary:
- AUDUSD trades slightly lower giving up 0.08% at 0.6782 after Construction work in Australia fell by 0.4% in the current quarter beating expectations
AUDUSD trades slightly lower giving up 0.08% at 0.6782 after Construction work in Australia fell by 0.4% in the current quarter beating expectations of -1.0% as the decline which started in Q3 2018 continues. Further pressure for Aussie comes after two major banks forecast a 0.25% rate cut by June 2020. RBA has already cut rates three times this year and sounded cautiously optimistic, pointed out that a turning point appears to have been reached.
The S&P Rating agency in a note today said that fiscal stimulus in Australia might place country’s AAA rating under pressure, while last week Moody’s credit rating reduced Australian growth forecast to 2.2% for 2020.
US data will set the tone today for the pair as traders await US GDP figures, Durable Goods Orders m/m, Pending Home Sales and Initial Jobless Claims.
AUDUSD Support and Resistance Levels to Watch
AUDUSD remains bearish as the pair trades below the major daily moving averages and continues the correction which started early November. AUDUSD failed to capitalise the recent positive headlines from trade talks the upside moves capped by the 50-day moving average.
On the downside, first support for AUDUSD stands at 0.6771 today’s low and then at 0.6750 the low from October 17th. A break below that level might open the way for a move down to 10-year lows.
On the upside, immediate resistance for the pair stands at 0.6790 today’s high and then at 0.6804 the 50-day moving average. A break above might signal a move to the next hurdle at 0.6825 the 100-day moving average. All in all the outlook is negative for AUDUSD, and only a break above the 100-day moving average could cancel the recent downtrend.