The Australian dollar is weaker this morning when valued again the Greenback. The decline during Friday’s session was limited by news suggesting continued progress in US-China trade talks. The Greenback was also supported by data on Thursday showing U.S. gross domestic product grew at an annual 2.6 percent rate in the fourth quarter, exceeding forecasts for a 2.3 percent gain.
On the data front this week we will see the release of February TD Securities Inflation, previously at -0.1%, Building Permits, and HIA New Home Sales for January. Housing data has been in the eye of the storm, so worse-than-expected figures could add a heavy weigh on the Aussie dollar.
From a technical perspective, the AUD/USD pair is currently trading at 0.7078. We continue to expect support to hold on moves approaching 0.7050 while now any upward push will likely meet resistance around 0.7100.