- The Aussie is struggling to maintain bullish momentum as risk appetite sours and Aussie data falters.
- The macro calendar is clear for the Aussie for the rest of the week and market sentiment is getting dragged down by the ongoing Syrian crisis.
The AUD/USD is tripping back into the 0.7750 zone after the Aussie lifted into 0.7770 in the overnight session to challenge yesterday’s highs, but the move has been hobbled and the AUD/USD is backing away from the high on disappointing macro figures.
Further reading – Australia inflationary expectations fell slightly in April
Australia inflation expectations declined slightly to 3.6 percent from the previous 3.7 percent today, and after that Investment Lending for Homes only lifted by 0.5 percent, a decline from the previous 1.1 percent. Home Loans data beat the expected -0.6 percent forecast to print at -0.2 percent. The figure is an improvement over the previous reading of -1.1 percent, but still a declining number.
The Aussie has rallied lately after China appeared willing to meet the US at the negotiation table based on Chinese President Xi Jinping’s words at the Boao Forum, but the market risk appetite is evaporating as Middle East tensions over Syria threaten to spill over in the UN.
AUD/USD Levels to watch
The pair is going to start challenging support if the decline continues, and as FXStreet’s own Flavio Tosti noted earlier, “the AUD/USD has rebounded from its 200-period simple moving average and is currently trading in the 0.7740-0.7773 range. Support lies at 0.7728, previous swing and at 0.7691 demand level. Resistance is seen at 0.7770 which is the high made on Tuesday and further up at 0.7845 swing low on March 13.”