The Australian dollar rose against the U.S dollar on Thursday, supported by the release of upbeat Australian building approvals data.
Official data earlier showed that Australian building approvals increased by 3.0% in August, exceeding expectations for a 1.0% rise. Building approvals for July were revised to a 2.1% gain from a previously estimated 2.5% increase. A separate report showed that Australia’s trade deficit narrowed to A$0.79 billion in August from A$1.08 billion in July, whose figure was revised from a previously estimated deficit of A$1.36 billion.
Intraday bias remains on the upside as 21 and 55 EMA trend indicators are freshly crossed upward in the 1 hour charts signalling a bullish reversal is about to unfold. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bullish momentum is still intact, so am expecting further rise to 0.88915 resistance (Weekly R1) in the medium term picture.
Later tomorrow afternoon, investors will be cautiously looking towards U.S. Non-Farm payrolls, Unemployment Rate report and Trade Balance.