Global macro overview for 13/12/2016:
The Australian House Price Index data posted overnight turned out to be much worse than investors' expectations. In the third quarter of this year, an average selling price of a residential home in Australia increased by only 1.5% against a forecast of 2.3%. This is not the first confirmation that the situation of the Australian real estate market is not the best. Another important figure for investors was NAB Business Confidence report. This report showed a drop to 5 points, while created by the RBA index measuring overall sentiment rose one notch to 5 points. Analysts at NAB emphasized the poor condition of the retail sector as well as the persistent low level of capital investment. In conclusion, not a great set of data from Australia's housing sector for the last quarter.
Let's now take a look at the AUD/USD technical picture in the daily time frame. The market still tries to challenge the technical resistance at the level of 0.7504, but so far in vain. Moreover, the pair is still trading below all of the moving averages and below the recently broken golden trend line support, so there is still no good news for bulls either. Sideways price action might continue for some time unless a clear violation of technical resistance occurs.
