The AUD/USD Takes Another Hit

The AUD/USD has continued to fall away after yesterday’s sell-off. And the news keeps getting worse as the data out today has been poor.

Building Approvals and Capital Expenditure, both came in below expectations. It appears the building and housing sectors in Australia are really starting to feel the heat. Which is a concern for the overall state of economy, given the fact that the there is so much reliance on the sector.

The AUD/USD is down again and it coincides with the NZD/USD which is down even further on the session.

The Kiwi got hit with some poor data of its own with business confidence dropping sharply.

Aussie Outlook

The AUD/USD is now below major resistance at 0.7300, and for me the next support level is 0.7240 and then 0.7200.

We are still following the channel that has been holding for some time and I really like the strength at the 0.7350 level.

Will definitely keep the short bias at the moment below that key support level.