FxWirePro: AUD/USD extends weakness, downbeat data probe buyers ahead of US CB Consumer Confidence

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.22% lower on the day at 0.6664 at around 05:30 GMT.

Previous Week's High/ Low: 0.6893/ 0.6675

Previous Session's High/ Low: 0.6744/ 0.6629

Fundamental Overview:

Data released earlier on the day showed Australia’s Westpac Leading Index dropped to -0.1% in December compared to -0.05% prior readings. 

On Tuesday, the Reserve Bank of Australia (RBA) latest monetary policy meeting minutes showed that the economy is gradually improving, and the policymakers discussed all options, including faster hikes.

On the other side, data on Tuesday showed US Housing Starts declined by 0.5% MoM in November following October's 2.1% contraction.

Further, US Building Permits fell by 11.2% versus a 3.3% drop recorded in the previous month.

Focus now on US Conference Board (CB) Consumer Confidence data for December, expected at 101.00 versus 100.00 prior.

Headlines surrounding China could also have impact on price action. 

Technical Analysis:

- AUD/USD was trading 0.14% lower on the day at 0.6670 at around 06:00 GMT

- The pair is extending downside after rejection at 200-DMA

- Bearish RSI divergence raises scope for further weakness

- Momentum is bearish and volatility is high and rising

Major Support and Resistance Levels:

Support - 0.6659 (55-EMA), 0.6620 (Lower BB)

Resistance - 0.6710 (21-EMA), 0.6740 (20-DMA)

Summary: AUD/USD pauses downside at 55-EMA support, break below will drag the pair lower.