It was a wild ride for the Australian Dollar on Wednesday and has found some upside when valued its US counterpart over the past 24 hours, trading as high as 0.7299 versus the US Dollar. The driving factor were the mid-term elections and as we began to see final numbers released the Aussie surged to a 6-week high. However, as the North America session began, the pair has drifted slightly lower unable to keep up the pace and hovering around 0.7275 at the time of writing.
Yesterday we saw the release of Australian AIG Performance of Construction, the index declined by 2.9 points to 46.4 in October which signalled a steeper rate of contraction in the construction industry. It also marked the industry’s second consecutive month of decline after 19 months of growth and the sharpest rate of contraction since October 2016.
There is no local data scheduled for today, tomorrow sees the release of the RBA’s monetary policy statement which provides valuable insight into the bank's view of economic conditions and inflation minutes.
On the technical front, supports sits at 0.7250 and 0.7200 with resistance up around 0.7300 and 0.7315