Will Housing Weigh on The AUD/USD?
Rowan Crosby • 1 min read
The AUD/USD has been relatively strong so far today and really ever since the flash crash it has been predominantly green
That has also coincided with a bounce in US equity markets, both of which are obviously risk-on assets.
The real worry for the Aussie economy continues to be housing. Today we saw building approvals come in at -9.1% which was a massive miss and a number that must be concerning to many.
We were looking at a -0.3 MoM figure and that has been blown out of the water. The news comes on the back of BOQ an Australian bank, raising interest rates on some loans given funding pressures.
There are already warning signs that the Aussie housing market is weak and this will clearly weigh on the AUD/USD going forward.
The AUD/USD is pushing towards the major level at 0.7200 and so far is green on the session.
I feel that we will find plenty of selling pressure at 0.7200 and that might open the door for a bit of a pullback.
The major support below is 0.7050 and there is every chance of a retest.