Audusd declines due to strong US new-home sales data

AUDUSD Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-0.13%	-8.3 Pips
Week to-date	-0.19%	-12 Pips
April	1.9%	118.9 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

In the United States, the new-home sales figures have shown a significant increase. In March, sales rose by 7.4%, a substantial jump from the 1.8% increase observed in February. This data suggests a strong demand and positive sentiment in the housing market, potentially reflecting consumer confidence and economic resilience. The repeated data of the U.S. new-home sales growth signifies its considerable impact and might hint at a more robust economic environment, even amidst varying economic phases.

The AUD/USD pair observed a slight decline on Wednesday, dropping by 0.13% to a rate of 0.63602. This depreciation can be attributed to the positive economic news from the United States, where an increase in new-home sales is indicative of a stronger U.S. economy. A thriving housing market often suggests overall economic health, thereby strengthening the U.S. dollar. As a result, the Australian dollar weakens against the U.S. dollar, as investors might perceive the U.S. as having more robust growth prospects currently. With no major events lined up for the day, the current market dynamics, influenced by data such as U.S. home sales, will continue to direct the movements of the AUD/USD exchange rate.

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What can we expect from AUDUSD today?

AUDUSD on Wednesday dropped -0.13% to 0.63602. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for AUDUSD looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at S1 0.63275 with break below could see further selling pressure towards S2 at 0.62947. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 0.64352 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 0.63486 would indicate selling pressure.

For the week to-date, take note that AUDUSD is mixed as compared to the prior week.

Key levels to watch out:

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