The latest blow to the Aussie dollar was a disappointing drop in the number of building approvals. However, things are not looking that great for quite a while. What’s next?
Here is their view, courtesy of eFXdata:
NAB discusses AUD/USD technical outlook and flags a scope for a grind lower towards 0.6550/70, albeit at a slower pace over the coming weeks.
“A weekly close below 0.6756 will complete the sixth successive down week and confirm that the MT downtrend remains in play.
ST momentum is again aligned with MT momentum and holds a negative bias. MT momentum is not making new lows with price, but remains negative. This explains the decline in the rate of change of the downtrend,” NAB notes.
“We anticipate that the downtrend will continue to grind lower at a slow pace towards 0.6550/70 multi-week,” NAB adds.
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