AUD/USD finally broke down below the wide trading range that characterized it since July 2012. On the hourly chart, we can also see a breakdown of a downtrend channel.
AUD/USD 8 month low – click image to enlarge
Recent economic data sent the pair lower. Is AUDUSD parity the next stop?
Aussie/dollar extended its slide in the new week. The main economic indicator that disappointed was building approvals, that dropped by 2.4%, contrary to expectations of a rise of 2.8%. This shows once again that the local economy outside the mining sector is still struggling.
Other, less important figures, were OK: AZ job advertisements rose by 3%, after +0.6% in the previous month. Company operating profits dropped by 1%, within expectations for a drop of 0.9%.
AUD/USD is now trading at 1.0125. After the convincing break below 1.0150, the pair made an attempt to rise, but could not get close. 1.0150 was a trough in early October 2012. The pair got close to this line also in September and in July.
AUD/USD Breaking under channel hourly chart
The hourly chart shows that A$/USD was sliding within a downtrend channel, and now accelerated its drops and made a dive lower. The low was 1.0111 so far.
Minor support appears at 1.01, but his is only a prelude to the really important line: AUDUSD parity, last seen in June 2012. Further below, 0.99 provides minor support. 1.150 remains topside resistance, followed by 1.0236.
For more lines, see the AUD/USD forecast.
The next move now comes from the RBA. Could the central bank cut the rates below the 3% line? This was the lowest post-crisis low. The RBA makes a decision tomorrow, at 3:30 GMT.
We also have the quarterly GDP release this week, as well as quite a few other important economic releases at the beginning of a new month.
