More Weak Aussie Data as Outlook Tightens Overseas
Rowan Crosby • 1 min read
The AUD/USD has started to consolidate around the 0.7100 mark, after a period of weakness.
There has been more weak data out today that showed, home loans fell a further 2.1% which is more than expectations. That isn’t a surprise really, as credit conditions in Australia have been tightening up in the last 12-24 months. It’s now pretty tough to get investment loans and that will clearly weigh on home values for years to come.
At the same time, we also saw the release of the RBA stability report. For the most part, it appears the risks at the moment are from overseas. There is concern around trade tensions and what that will mean for China.
If China does slow down that will cause a drag on the Australian economy as China is a large importer of Australian natural resources.
The AUD/USD is relatively unchanged on the news as none of this really is going to come as much of a shock to anyone.
The sell-off in the AUD/USD does appear to have slowed down and that has seen price consolidating around 0.7100. That comes as the USD continues to grind lower.
The major level at 0.7000 is my downside target for now while we have to take out the swing low at 0.7050 first.
Any upside to 0.7200, remains a good place to be selling if, in fact, we can get that high any time soon.