Wednesday, September 30, 2015

AUD/USD off-highs, holding above 0.7000

FXStreet (Mumbai) - The AUD/USD pair stalled its recovery path from 0.6980 region and now wavers above 0.70 handle, despite risk-on trades dominating the Asian markets, as traders digest the latest Australian data which missed estimates.

AUD/USD supported at hourly 20-MA

Currently, the AUD/USD pair trades 0.29% higher at 0.7006, retreating from fresh session highs reached at 0.7021 in last hours. The Aussie trimmed gains as the overnight recovery loses steam, after the latest poor Australia’s building consents data weighs on investors’ sentiment.

The total number of building permits issued in Australia declined a seasonally adjusted 6.9% in August, missing forecasts for a decline of 2.0% following the upwardly revised 7.9% increase in July.

However, the Aussie remains well bid and enjoys gains on the back of re-emergence of demand for riskier/ higher yielding assets such as the Australian dollar, following solid recovery seen in the Asian indices, with the Australian S&P ASX 200 rallying 1.40% backed by banking and mining stocks.

Meanwhile, markets turn their focus towards the upcoming US ADP employment change data and Fed Chair Yellen’s speech due later in the day for further momentum.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7042 (Sept 8 High) levels, above which gains could be extended to 0.7096 (Sept 23 High) levels. On the flip side, support is seen at 0.6984 (Sept 23 Low) levels from here it to 0.6943 (Sept 10 Low).
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