The Australian dollar fell during the Asian session, making its second monthly loss in a row and its longest weekly loss in five years amid the fourth consecutive daily loss against the US dollar following the developments and economic data followed by the Australian economy and on the eve of developments and economic data on Friday By the American economy the largest economy in the world.
At 02:55 am GMT, AUDUSD fell 0.27% to 0.6710 levels from opening levels of 0.6728, after hitting a session low of 0.6706 and a high of 0.6736.
The Australian economy followed the release of the housing market data with the release of building permits which showed a decline to 9.7% versus 0.8% in June, worse than analysts' expectations of holding steady at zero levels, as the annual reading of the same index showed. The decline widened to 28.5% versus 25.0%, contrary to expectations that the decline would shrink to 22.2%.
On the other hand, investors are currently awaiting the release of spending and personal income data by the US economy which may reflect the acceleration of personal spending growth to 0.5% vs. 0.3% in June, and the slowdown in personal income growth to 0.3% vs. 0.4% in June. Core CPE reading may show accelerated growth to 0.3% vs. 0.2% in June.
This comes ahead of the Chicago PMI reading, which may reflect a contraction in contraction to 48.1 from 44.4 in July, leading to the final release of the University of Michigan's consumer confidence index, which may show an expansion to 92.5 compared to the reading. The preliminary month for August was at 92.1 and against 98.4 in July.
Technical Analysis
AUDUSD stabilizes without the support of the bearish triangle, and starts today with a slight bearish bias to move away from the broken support, reinforcing expectations for the continuation of the bearish trend during the coming sessions, which aims to break the level of 0.6700 to open the way for heading towards 0.6700 as a next stop.
SMA 50 continues to support the suggested bearish wave, which requires stability below 0.6830.
Expected trading range for today is between 0.6670 support and 0.6760 resistance.
Expected trend for today: Bearish.