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  • The AUD is mildly bid around 0.7067 in Asia, having failed to hold on to gains above 0.71 yesterday.
  • Aussie September building permits bettered estimates in month-on-month terms, but tanked 14.2 percent in annualised terms.
  • The mixed data and risk-off tone in the Asian equities offers investors little incentive to hold in the AUD.

Currently, the AUD/USD is trading at 0.7067 – up 0.16 percent on the day – having printed a five-day high of 0.7109 yesterday.

Australia September building permits came in at 3.3 percent, beating the Reuters estimate of 3 percent and up significantly from the previous month’s print of -9.4 percent. Meanwhile, building approvals fell 14.1 percent year-on-year terms following at 13.6 percent drop in August.

The annualised drop is likely overshadowing the better-than-expected month-on-month reading and capping the upside in the AUD.

Further, the Asian stocks are flashing red, tracking a 245 point drop in the Dow Jones Industrial Average (DJIA) in the overnight trade. The risk aversion could boost haven demand for the treasuries and keep the greenback better bid.

Technically speaking, a move above 0.760 (Oct. 17 high) is needed to confirm a bearish-to-bullish trend change.

Technical Levels

Resistance: 0.7109 (previous day’s high), 0.7160 (Oct. 17 high), 0.7172 (50-day exponential moving average)

Support: 0.7021 (Friday’s low), 0.70 psychological support), 0.6973 (February 2016 low)