Thursday, March 22, 2018
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AUD/USD cheers Aus building approvals a huge beat, nears 0.7875
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  • Solid Aus building consents underpin.
  • Re-takes 0.7850.
  • Focus shifts to the US JOLTS jobs data.

AUD/USD remains better bid so far this session, reversing yesterday’s corrective slide from near multi-month tops of 0.7876, as an unexpected surge in the Australian building approvals data offered the much-needed impetus to the AUD bulls.

AUD/USD : Bulls committed to test 0.7900

The recovery in the Aussie from near 0.7830 support area gained extra traction after Australia’s building consents data for November jumped +11.7% m/m versus -1.3% expected and +0.9% previous. Westpac Analyst, Simon Murray, noted: “November’s uplift was driven by a jump in Victorian approvals, up 38% on the back of a 21% rise in October, while the rest of Australia was relatively flat, down 2.0% in the month following October’s 8.3% drop.”

More so, the major also benefits from the renewed weakness seen around the greenback across its main competitors, as the sentiment remains weighed down by the mixed Fedpseaks. The USD index eases by -0.07% to 92.02, having tested five-day tops at 92.13 last hour.

Meanwhile, positive tone seen around the Asian equities, as well as oil prices, underpin the risk sentiment, further collaborating to the upside in the higher-yielding currency, the AUD. Attention now shifts towards the second-liner US JOLTS job openings data ahead of the Chinese inflation data due out tomorrow.

AUD/USD Preferred Strategy

Jim Langlands at FX Charts, noted: “The 4-hour indicators still look a little heavy so another move back towards 0.7825/30 would not surprise, below which, 0.7800/0.7810 would attract. On the topside, resistance will be seen at 0.7850 and at 0.7870 although this is now beginning to look a little toppish. I remain neutral but it may be worth selling 0.7860, with a tight SL above 0.7890.”

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