Forex: AUD/USD trading at support near 1.0310

The AUD/USD has spent the afternoon of European trading in a tailspin, as the yesterday’s gains now seem like a distant memory. After the publication of US data, the pair has found traction at the 1.0310 support, where the pair is presently testing in these moments, already suffering a decline of -0.41%.

In the United States, Building Permits (MoM) were reported at 0.925M in January, beating estimates of only 0.915M. Meanwhile the vaunted Producer Price index ex Food and Energy (MoM and YoY) grew +0.2% in January (in line with expectations of +0.2%), and +1.8% (exceeding projections calling for only +1.6%) respectively. Finally, the Producer Price Index (MoM and YoY) climbed only +0.2% in January (slightly missing a consensus of +0.3%) and yielded +1.4% in January (consistent with projections) respectively.

According to the Technical Analyst Team at ICN.com, “The AUD/USD dropped sharply towards 1.0310, however we still think that the possibility for positivity is valid in that the pair couldn’t break 1.0275 levels. Moreover, the linear regression indicators worry us with negativity, but at the same time we will count on stability above the mentioned support at 1.0275 to keep the suggested scenario valid.”

ICN.com analysts posit the next supports at 1.0310, then 1.0275 and finally 1.0220. Should the pair initiate from a prolonged recovery, a break below the 1.0345 resistance will usher in the additional means of corrective structures at 1.0385 and 1.0400.