The housing data showed a big fall after four months of strength, so it may be nothing more than a bit of reversion. The RBA wants to see the housing sector pick up, so this figure today will be an irritant and as an input to interest rate policy it argues for continued accommodation (no pun intended).
Trade figures were better than expected – continued highish commodity prices playing a part here.
Moves have been tight, no need to amend the thoughts/levels presented earlier today:
1.0385/95 to 1.0495/05 is the near-term range. I prefer buying dips but am mindful of the heady heights it is not far from.
Levels – 1.0430 is very close and contains initial bids around there. On the topside 1.0470/80 has attracted short-term sellers.
