News & Analysis
Double delight pushes AUDUSD back above .77 cents.
We saw some buyer action on the AUDUSD yesterday as a higher low was set up from .7650. Sellers reemerged overnight in the US session to quell buyer enthusiasm and re-confirm .7688 resistance.
Enter this morning’s trade balance and building approvals. The market was expecting 1.42B from today’s trade balance, in delight one, Australia’s trade balance increased to 1.745B in September. The table below shows an amazing figure from August to September an increase of 100%.
Tables; Balance on Goods and Services – Key Figures
For delight two, building approvals increased to 1.5% beating an expected -0.9%. Today’s data showed a healthy increase over the last 0.4% release.
Dwelling units approved Privet sector houses approved
With these two positive influences, we saw the AUDUSD break higher beating last night’s resistance and locking in the 4H higher low. (refer chart below) Buyers have continued to move higher today taking price back above .7700, reaching a 5 session high. While .7624 continues to hold as a daily low, we’re looking for price to remain in a bullish bias. .7719 could offer resistance to buyers on the short term.
AUDUSD 4H Chart
Good trading from Eightcap
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