The Australian Dollar (AUD) showed resilience against the US Dollar (USD) on Monday, despite positive economic data. The rise in Australia’s Building Permits by 10.4% in July, the strongest growth since May 2023, was overshadowed by dovish expectations surrounding the US Federal Reserve (Fed).
The positive data from Australia, including the rebound in Building Permits and China’s Caixin Manufacturing PMI, had a limited impact on the AUD due to concerns about a potential rate cut by the Fed. The US Dollar faced downward pressure as expectations of a 25 basis point rate cut in September increased, although support was found in the US July Personal Consumption Expenditures (PCE) Index data.
Looking ahead, market focus will shift to the upcoming US employment figures, particularly the Nonfarm Payrolls (NFP) for August, for further insights into the Fed’s monetary policy direction.
Key Market Updates: Australian Dollar Holds Ground Post-Economic Data Release
- The US Personal Consumption Expenditures (PCE) Price Index for July met expectations at 2.5% year-over-year, while the core PCE remained at 2.6%. US GDP growth in the second quarter exceeded expectations at 3.0%, with Initial Jobless Claims showing a slight decrease.
- Australia’s Private Capital Expenditure declined unexpectedly in the second quarter, while the Monthly Consumer Price Index (CPI) for July slightly decreased but remained above market consensus.
- Fed Atlanta President Raphael Bostic hinted at possible rate cuts, reflecting cooling inflation and higher unemployment rates.
Technical Analysis: Australian Dollar Faces Support and Resistance Levels
The AUD/USD pair hovers around 0.6760, below an uptrend line but supported by the 14-day Relative Strength Index (RSI) above 50. Resistance levels include 0.6798 and 0.6860, while support may be found at the 14-day Exponential Moving Average (EMA) at 0.6732.
AUD/USD: Daily Chart
Australian Dollar Price Today
The Australian Dollar showed strength against major currencies today, particularly the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.04% | -0.22% | 0.06% | -0.02% | 0.10% | 0.03% | |
| EUR | 0.05% | 0.04% | -0.16% | 0.09% | 0.04% | 0.14% | 0.07% | |
| GBP | 0.04% | -0.04% | -0.23% | 0.04% | -0.02% | 0.13% | -0.00% | |
| JPY | 0.22% | 0.16% | 0.23% | 0.22% | 0.22% | 0.44% | 0.16% | |
| CAD | -0.06% | -0.09% | -0.04% | -0.22% | -0.04% | 0.05% | -0.04% | |
| AUD | 0.02% | -0.04% | 0.02% | -0.22% | 0.04% | 0.09% | 0.02% | |
| NZD | -0.10% | -0.14% | -0.13% | -0.44% | -0.05% | -0.09% | -0.08% | |
| CHF | -0.03% | -0.07% | 0.00% | -0.16% | 0.04% | -0.02% | 0.08% |
Insights on Building Permits (MoM) Indicator
The Building Permits indicator released by the Australian Bureau of Statistics reflects the number of permits for new construction projects, impacting corporate investments and economic development. A higher number of permits is positive for the AUD.
Analysis Breakdown:
The Australian Dollar showed strength against the US Dollar despite positive economic data from Australia. However, concerns about a potential rate cut by the Fed limited the AUD’s gains. The upcoming US employment figures will provide further insights into the market direction. Technical analysis indicates potential support and resistance levels for the AUD/USD pair, guiding traders on possible entry and exit points. Understanding key economic indicators like Building Permits can help investors make informed decisions based on fundamental data.