Australia's housing market showed some strength in January. This is confirmed by the report recently published by the Housing Industry Association (HIA).
Nevertheless, the positive figures seem to have failed to support the Australian Dollar as it keeps losing value against its American counterpart.
In particular, the sales volume of residential property increased by 0,5% during the reporting period. The index started growing after a slight decline seen in December 2013. The sales of one-family houses increased by 0,3% while the sales of apartments increased by 1,6% over the same reporting period.
According to HIA's chief economist Shane Garret, the mentioned figures give us to expect higher activity in the local construction sector this year. The association expects the amount of new buildings under construction to increase up to 165 000 in 2014 and up to 168 000 in 2015.
By the way, the Australian construction sector is supported by the RBA's interest rate cuts and better investment sentiment.
Meanwhile, the Australian Dollar keeps retracing from the recent rally shown against the US Dollar. As of today, AUDUSD keeps forming the downswing represented by wave A/b of level H12. According to the experts working for Masterforex-V Academy, the currency pair is developing a wave of a smaller scale inside the retracement. A further decline may see some difficulty overcoming the following levels of support: 0.8886/81, 0.8847/26, and the bottom of the upward sloping channel . The current downswing will be completed as soon as the price overcomes the top of the mF sloping channel and breaks above the MF pivot located at 0.8987 (as shown below).
