The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of AUDUSD to less than 0.7450 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 0.7447. A support can be noted around 0.7334, an immediate trendline support ahead of 0.7300, the psychological number and then 0.7206, another trendline support as demonstrated with pink color in the given below chart.
On the upside, a hurdle can be noted near 0.7472, an immediate horizontal resistance level ahead of 0.7483, the trendline resistance as demonstrated with red and black colors in the given above chart and then 0.7500, a key psychological level. A break and daily closing above the 0.7500 resistance shall incite renewed buying interest, validating a move towards the 0.7620 resistance zone. The technical bias shall remain bullish as long as the 0.7206 support area is intact.
Australia Building Permits
Australian building permits bounced back in April from heavy losses the previous month, painting a mixed picture of a housing market that some feel is overheating. Approvals rose 4.4% in April after seasonal adjustments, following a revised 10.3% drop the previous month, the Australian Bureau of Statistics said in a report. Economists in a median estimate forecast permit to rise 3.2%. Compared to the same month a year earlier, permits were down 17.2%. In seasonally adjusted terms, a total of 17,414 dwellings were approved in April. Private sector houses represented more than half of the total, which translated into a month-on-month increase of 0.5%. Excluding houses, private sector dwellings climbed 9.6% from March but were down 26.5% from year-ago levels
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.
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