The AUD/USD Finally Cracks 0.7000: Building Approvals Weak
Rowan Crosby • 1 min read
The Aussie has certainly had a horror week or two and price has finally ticked below the significant 0.7000 level.
For the AUD/USD this appears to be simply a matter of time, with all the focus on the RBA potentially cutting rates next week on the back of the dire CPI print that we saw last week.
This morning there was more negative news for the Aussie with building approvals lower MoM.
Approvals came in at -15.5 % MoM, which was worse than expected (exp -12.0% MoM with the, prior +19.1%).
Yearly was -27.3% and also a miss with the expected -25.1% and prior -12.5%.
The Aussie is down on the session and now printing below 0.7000, for the first time since we saw the big sell-off or flash crash if you like.
We did see price tick lower last week, but it barely traded there and it was on the back of a really large push post-CPI. So it was always going to struggle to break through the first time around.
This time, however, things are not looking so pretty. There is still plenty of hype suggesting the RBA will cut rates next week ahead of the election. So if that comes to fruition, then there might be a real sharp dump coming up on Tuesday.
All the focus for the AUD will now be on that meeting and what exactly Governor Lowe is plotting.