During the Asian session, the AUD/USD pair is falling, testing 0.6950 for a breakdown within a technical correction after yesterday's noticeable strengthening.
Positive dynamics developed against the release of US statistics on inflation for December, which became another signal in favor of a gradual weakening of the “hawkish” rhetoric of the US Federal Reserve: as expected, the figure fell from 7.1% to 6.5%, which became the lowest level since November 2021. Analysts emphasize that it is still too early to talk about the final victory over rising prices since significant geopolitical risks in Eastern Europe remain, and the global economy cannot reach sufficient recovery levels.
Today, the pressure on the position of the Australian currency is exerted by national macroeconomic statistics: the volume of mortgage loans issued in November decreased by 3.8% after losing 2.9% last month, although experts expected a fall of only 3.0%. Investment borrowings for the construction of houses for the same period showed a negative trend of –3.6%, worse than the decline of 2.2% in October.
On the daily chart, Bollinger bands steadily grow: the price range expands but not as fast as the “bullish” activity develops. The MACD indicator grows, keeping a strong buy signal (the histogram is above the signal line). Stochastic, having risen slightly above 80, reversed into a horizontal plane, indicating that the Australian dollar may become overbought in the ultra-short term.
Resistance levels: 0.7000, 0.7050, 0.7100, 0.7150. | Support levels: 0.6950, 0.6900, 0.6850, 0.6800.