FxWirePro: Aussie buoyed on upbeat construction activity data, AUD/USD extends gains above weekly 200-SMA, bias higher

• AUD/USD hits 4-week highs at 0.7995 before paring some gains to currently trade at 0.7983.
   
• Aussie remains bid after the data released in Australia showed a big improvement in the construction activity.
   
• 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.
   
• Close above weekly 200-SMA at 0.7968 could see further upside. Scope then for test of channel top at 0.8115.
   
• Technical studies are bullish. We see bullish invalidation on break below 20-DMA at 0.7911.
   
• Focus now on US Q2 GDP due for release at 1230 GMT for further impetus. Trump’s speech on tax reforms will also be keenly watched.

Support levels - 0.7917 (5-DMA), 0.79, 0.7891 (23.6% Fib retrace of 0.73285 to 0.80656 rally)

Resistance levels - 0.7962 (Aug 17 high), 0.7968 (weekly 200-SMA), 0.80, 0.8042 (Aug 1 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-20-DMA-good-to-go-long-on-break-above-860753) has hit TP1&2.

Recommendation: Book partial profits at highs, raise trailing stop to 0.7910, hold for upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 53.991 (Neutral), while Hourly USD Spot Index was at -10.343 (Neutral) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest