FxWirePro: AUD/USD extends weakness, big miss in Aussie building permits weighs, stay short

AUD/USD chart on Trading View used for analysis

• Aussie building permits tanked in July, fell sharply, missing the expectations by a big margin.
   
• Australia's building permits fell 9.4 percent m/m in July, missing forecasts for a rise of 1 percent.
   
• The annualized figure came in at -13.6 percent, compared to estimate -2.5 percent. Poor data bolstered the already bearish tone in the AUD. 
   
• Major trend in the pair remains bearish and recovery attempts were rejected at 55-EMA. Price action capped below cloud.
   
• Focus now on US ADP employment change and the ISM non-manufacturing number due later in the NY session.
   
• Upbeat numbers can send the treasury yields higher, supporting the US dollar and weighing further on the pair.

Support levels - 0.7144 (Sept 5, 18 low), 0.7107 (78.6% Fib), 0.7085 (Sept 11 low)
Resistance levels - 0.7223 (21-EMA), 0.7281 (55-EMA), 0.7315 (Sept 26 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-fades-upside-post-RBA-extends-weakness-below-072-handle-stay-short-on-rallies-1437190) is progressing well.

Recommendation: Hold for targets. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -32.9275 (Neutral), while Hourly USD Spot Index was at 27.0931 (Neutral) at 0400 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.