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  • Aussie building permits tanked in July, sending the AUD to session lows below the 61.8 percent Fibonacci retracement.
  • The US equities rose to a record high yesterday, stabilizing the risk sentiment, but failed to put a bid under the AUD.

The already weak AUD/USD fell to a session low below 0.7173 (61.8 percent Fib R of 0.7085/0.7315) after the Aussie building permits fell sharply, missing the expectations by a big margin.

As of writing, the pair is trading at 0.7170, having clocked a high of 0.7192 earlier today.

The building permits fell 9.4 percent month-on-month in July, missing the estimated rise of 1 percent by a big margin. The annualized figure came in at -13.6 percent, compared to estimate -2.5 percent.

The weak data bolstered the already bearish tone in the AUD. Moreover, the currency pair was trading on the defensive heading into the data release, despite the positive action in the US stock markets. The Dow Jones Industrial Average (DJIA) rose to record highs yesterday, stabilizing the risk sentiment, but failed to put a bid under the AUD.

The pair may extend losses in the US session if the US ADP employment change and the ISM non-manufacturing number beats estimates and sends the treasury yields higher.

AUD/USD Technical Levels

Resistance: 0.7202 (50-hour EMA), 0.7238 (previous day’s high), 0.7272 (50-day EMA)

Support: 0.7142 (Sept. 17 low), 0.71 (psychological level), 0.7085 (Sept. 11 low)