4 Jul 2013
Aus building approvals next: Impact on AUD/USD
FXstreet.com (Barcelona) - The AUD/USD has been recovering ground since the last European trade, after a fake head break through 0.9050 was rejected at 0.9036, leading the rate to exchange hands at 0.91 now following a session high of 0.9120.
Today's building approvals in Australia will provide an updated picture in the construction sector. According to Kenny Fisher at ForexCrunch, "the indicator tends to be erratic, making accurate predictions a tricky task. The indicator posted a gain of 9.1% last month, the best showing since July 2012. This was well above the estimate of 4.1%. However, the markets are bracing for a very weak release in July, with an estimate of -0.9%."
Fisher says that a number within expectations - 2.5% to 5.5% - should fail to provide enough momentum to move the pair much. Above expectations - 5.5% to 8.5% - may give an impulse to the AUD/USD, potentially for a retest of 0.9115/20. Below expectations - -1.0% to 2.4% - may set a bearish tone towards 0.9070.
Today's building approvals in Australia will provide an updated picture in the construction sector. According to Kenny Fisher at ForexCrunch, "the indicator tends to be erratic, making accurate predictions a tricky task. The indicator posted a gain of 9.1% last month, the best showing since July 2012. This was well above the estimate of 4.1%. However, the markets are bracing for a very weak release in July, with an estimate of -0.9%."
Fisher says that a number within expectations - 2.5% to 5.5% - should fail to provide enough momentum to move the pair much. Above expectations - 5.5% to 8.5% - may give an impulse to the AUD/USD, potentially for a retest of 0.9115/20. Below expectations - -1.0% to 2.4% - may set a bearish tone towards 0.9070.