AUD/USD: Terrible Construction Data Might Force RBA Cuts
Rowan Crosby • 1 min read
It probably comes as no shock that the Australian property market is on the ropes. After a few years where house prices doubled in places such as Sydney and Melbourne.
Now the tide continues to turn and the flow on effect is started to dig into the building and construction industry as well.
Today’s construction data shows a big contraction of -3.1% vs 0.5% expected.
Not a shock as I say, but the weakness clearly must be a factor in the RBA’s thinking. There are a number of possible changes coming politically regarding the housing market should the current opposition party win the next election.
So, for now, there is plenty of worry about what is one of the main areas of the Aussie economy.
0.7050 and then 0.7000 are my next two key support levels below, with 0.7100 key support.
0.7200 is R1 and 0.7300 is R2 and the most recent highs sitting at 0.7400.