The Aussie is under pressure from the both sides.
The strong data from Chinese housing market and the growth in property prices from 6.9% to 7.3% gives support to the Australian dollar. The commodity markets don’t show a significant increase, but not decrease.
However, the hint of the Reserve Bank of New Zealand on the lowering of rates, although the central bank meeting is still far, putting pressure on the Aussie. Also, the CPI was slightly less than the forecast in New Zealand.
The Australian government bond yields rising moderately the second day. In general, the situation can be called quiet. The further movement of the Aussie will depend on the US dollar.
The US is to publish NAHB housing market index. The forecast is unchanged.
We expect the pair AUD/USD to descend to the range of 0.7480-0.7500.
How to trade
We would buy put options if the pair AUD/USD falls below 0.7565.
Target price: 0.7565
Expiry time: 20:00 GMT