- The AUD ticks lower as Aussie economic data continues to miss expectations.
- Speech from the RBA’s Lowe is likely to draw a large crowd.
The AUD/USD fumbled in the early Asia session for Wednesday, falling into 0.7535 following disappointing construction work data for Australia. The pair seems to have found a floor heading into the rest of the day’s trading, and is pushing back towards 0.7550.
Figures for Australian Construction Work Done widely missed expectations earlier today, printing at a disappointing 0.2%, a wide miss of the anticipated 1.0% figure, and Australian construction is struggling to recover from the previous reading’s abysmal -18.3% contraction (revised today from -19.4%). The Aussie tanked on reaction afterwards, falling from a session high of 0.7582.
Next up for the Aussie will be the Reserve Bank of Australia’s (RBA) Governor, Philip Lowe, who delivers a speech at 08:30 GMT today. Lowe will be speaking on the Chinese economy and its implications for the Australian economic landscape, and with so much focus being diverted to the ongoing US-China trade conflict, many traders will be keeping an eye on Lowe as he talks about potential knock-on effects.
AUD/USD levels to watch
As FXStreet’s Valeria Bednarik noted, key support could be hampering further downside: “from a technical point of view, the 4 hours chart shows that the pair stalled its recovery around a modestly bearish 200 SMA and a few pips below the 50% retracement of the mentioned decline at 0.7620, but also that so far is holding above the mentioned Fibonacci level at 0.7565, the immediate support. The 20 SMA in the mentioned chart gains upward traction below the current level, while technical indicators eased modestly but remain well above their mid-lines, indicating limited selling interest for the time being.”
Support levels: 0.7520 0.7470 0.7435
Resistance levels: 0.7590 0.7625 0.7660
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