AUD/USD drops to lowest since mid-January

AUD/USD faded spike to 0.7509 and fell to 0.7478; the lowest level since January 17 after the data released in Australia showed home financing dropped in February for the first time in five months.

Double top reversal

The pair fell below the double top neckline support of 0.7491 after the data showed the home loans declined by a seasonally adjusted 0.5% in February, following a revised 0.4% increase the previous month. The markets were expecting a gain of 0.1%.

Lending for homes, a gauge of fixed residential property loans, fell 5.9% from January.

Meanwhile, the American dollar remains well bid in Asia as the 10-year treasury yield added two basis points. The yield was last seen trading around 2.393%.

AUD/USD Technical Levels

A break below 0.7458 (Jan 16 low) would open doors for a sell-off to 0.74 (zero figure) and 0.7370 levels (Dec 1 low). On the other hand, a break above 0.7491 (double top neckline hurdle) could yield a re-test of 0.7511 (Jan 27 low) and 0.7543 (Mar 3 low).