AUD/USD: 50-hour MA capping upside, Australia's housing credit growth hit record low in February

• AUD/USD is currently attempting a break above the 50-hour MA hurdle at 0.7088. 
• Australia's housing credit growth in February was the slowest on record. The AUD, however, has shrugged off the weak data and is likely tracking the S&P 500 futures higher. 

AUD/USD is better bid at press time even though the data released earlier today showed Australia's credit growth in February was the lowest on record. 

Credit growth for housing rose 0.3 percent month-on-month in February, following a 0.2 percent rise in the preceding month, the Reserve Bank of Australia reported earlier today. The annualized growth rate, however, was just 4.2 percent, the lowest since 1977. 

Further, Credit growth for owner-occupiers slipped to 5.91%, the lowest level since August 2015. Investor credit grew by only 0.85% over the same period, the slowest pace on record, according to Business Insider. 

Housing credit growth tends to lead home prices by around six months, according to the Commonwealth Bank. So, with credit growth hitting record lows, house prices are set to fall further in the near future. The data validates the widespread belief that the RBA would have to cut rates in the second half of this year to support the economy. 

So far, however, the Aussie dollar has ignored the dismal housing credit growth number, possibly due to signs of risk reset in the financial markets. The anti-risk JPY hit an eight-day low versus the US dollar earlier today and the S&P 500 futures are currently up 0.23 percent on the day. 

As of writing, AUD/USD is trading just above the descending (bearish) 50-hour moving average (MA), currently at 0.7102. Acceptance above that average line could yield further gains toward the 200-hour MA at 0.7102. 

Technical Levels