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AUD/USD break of 0.9590 reveals new downside potential

FXstreet.com (Barcelona) - The Aussie is breaking sharply lower during Asia trade, taking out the lows from the previous week at 0.9590 and now down 46 pips at 0.9568.

Economic data released earlier in the session provided the initial catalyst for the sharp decline, with the Constructio Work Done report coming in well below estimates at -2.0% actual vs. 1.0% estimate. According to Sean Lee of FXWW, “unsurprisingly there were plenty of stop-loss orders below .9580 which have now been triggered. There are Sovereign bids reported just below here towards .9550 so I’m not expecting any major capitulation”

The FXStreet.com Trend Index remains in Slightly Bearish set up on the daily chart, while the OB/OS index reads Oversold. Initial support now sits at 0.9550 (noted above by Sean Lee), followed by 0.9500. First resistance sits at 0.9593 (previous support, now resistance), followed by 0.9691 (the 9dma).

Australia 1Q Construction Work Done down to -2% vs 0.1%

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