AUDUSD Plunges As Construction Work Data Disappoints

FXOpen

The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Wednesday, dragging the price of AUDUSD to less than 0.7600 following the release of some key economic news. The technical bias remains bullish because of a Higher High in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 0.7595. A hurdle may be noted around 0.7654, the confluence of a horizontal resistance as well as the intraday high of yesterday. A break above the 0.7654 resistance shall validate a rally towards the 0.7753, the swing high of the latest major upside rally as demonstrated in the given below daily chart.

AUDUSD Plunges As Construction Work Data Disappoints

On the downside, the pair is likely to find a support around 0.7500-0.7510, the confluence of the horizontal support and the psychological number ahead of 0.7420, the swing low of the latest major downside move. The technical bias will remain bullish as long as the 0.7420 support area is intact.

Construction Work Falls

Total construction work done in Australia has fallen for the fifth consecutive quarter, dragged down by new work failing to fill the void left by the completion of big resource projects. On a seasonally adjusted basis, the Australian Bureau of Statistics figures show that the value of total construction fell 3.7 per cent in the June quarter to $47.4 billion, a level not seen since June 2011, when the construction sector was just beginning to recover from the GFC. Total construction over the year is now down 10.6 per cent.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair on short-term rallies appears to be a good strategy in the near term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.