During Friday’s trading session AUD/USD traded within the range of 0.9254-0.9298 and closed at 0.9269, gaining 0.06% for the day, while recording a 0.70% weekly loss.
Fundamental view
The index of pending home sales in the United States probably rose 0.6% during March compared to February, when sales unexpectedly dropped 0.8%.
When a sales contract is accepted for a property, it is recorded as a pending home sale. As an indicator the index provides information on the number of future home sales, which are in the pipeline. It gathers data from real estate agents and brokers at the point of a sale of contract and is currently the most accurate indicator regarding US housing sector. It samples over 20% of the market. In addition, over 80% of pending house sales are converted to actual home sales within 2 or 3 months. Therefore, this index has a predictive value about actual home sales.
Although there are some cancellations, there are not enough for the data to be skewed one way or another. The base value of the index is equal to 100, while the base year is 2001, when there has been a high level of home sales.
The National Association of Realtor’s (NAR) will release the official index value at 14:00 GMT on Monday. In case pending home sales increased more than anticipated, this would have a bullish effect on the greenback.
Technical view
According to Binary Tribune’s daily analysis, in case AUD/USD manages to breach the first resistance level at 0.9293, it will probably continue up to test 0.9318. In case the second key resistance is broken, the pair will probably attempt to advance to 0.9337.
If AUD/USD manages to breach the first key support at 0.9249, it will probably continue to slide and test 0.9230. With this second key support broken, the movement to the downside will probably continue to 0.9205.
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