AUD/USD remains bid following upbeat Aussie data

AUD/USD remains bid around 0.7970 after the data released in Australia showed a big improvement in the construction activity and a drop in the building approvals. 

The second quarter construction work has jumped 9.3%, beating the forecast of 1.0%. Meanwhile, the building approvals dropped 1.7% m/m and 13.9% y/y in July. However, the fall was less steep than expected and that seems to have saved the day for the AUD bulls. 

AUD regained bid tone in early Asia as traders shrugged off the North Korea tensions. Gold trading well above the $1300 mark and the losses in the treasury yields is also helping the AUD. 

The currency pair is likely to track gold and treasury yields ahead of the US GDP due for release at 12:30 GMT. Traders would also keep an eye on Trump’s speech on tax reforms. 

AUD/USD Technical Levels

A break above 0.7988 [July 20 high] would open up upside towards 0.8043 [Aug 1 high] and 0.8066 [July 27 high]. On the downside, breach of support at 0.7925 [10-DMA] would expose 0.7892 [23.6% Fib R of 0.7328 - 0.8066] and 0.7878 [rising trend line support on the daily chart].