The down move in the AUD/USD, which started on April 21st, doesn’t look as though it has run its course. Tuesday’s Building Approvals and Current Account data will be closely watched for a turn in the recent string of weaker data. Both sets of data are forecasted lower and it’s likely that last week’s low of .7140 will be challenged on “as expected” readings.
The AUD/USD has fallen for five consecutive weeks and with Iron-ore and Copper prices probing 3-month lows, we don’t see any technical indicators pointing to a price reversal this week. The AUD/USD peaked at .7835 on April 21st and posted a low of .7175 early last week and even though short-term indicators are beginning to get stretched, there is little upside momentum.