AUD/USD retreats from 28-month high, Aussie home loans rise 2.9%

AUD/USD continues the retreat from the 28-month high of 0.8067, now trading near 0.8050 handle. 

Australia July home loans came-in at 2.9% m/m, beating the estimated rise to 1.0% from the previous month’s figure of 0.5%. Investment lending dropped 3.9% m/m. The upbeat headline figure failed to help the Aussie scale new multi-year highs. 

The focus now shifts to China trade data due at 2:00 GMT. The release is usually delayed and will be followed by RBA Assistant Governor Debelle speech at 3:00 GMT. 

The central banker could talk down the AUD and that could be the reason behind the lacklustre reaction in the AUD/USD following the release of a better-than-expected Aussie home loans number. 

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes-

“From a technical point of view, the pair seems poised to extend its advance, even beyond the so far yearly high of 0.8065, given that in the 4 hours chart, the pair found buying interest around a bullish 20 SMA, which advanced above the critical 0.7965 Fibonacci support, while in the same chart, technical indicators hold well above their mid-lines, now directionless. “ 

Support levels: 0.8000 0.7965 0.7935

Resistance levels: 0.8065 0.8100 0.8140