• Trades +0.1% in a tight range, extending Monday's 0.5% U.S. dollar-led gain
• Carry trade demand continues - JPY crosses rise AUD/JPY +0.5%, EUR/JPY +0.3%
• Australia building approvals missed expectations, falling 3.6% v's -1% poll
• Housing is a hot topic for this year's election - soft data helps opposition
• Risk appetite, the U.S. dollar and carry flows to lead AUD - quiet so far
• Charts: 21-day Bollinger bands contract, daily momentum studies base
• Mixed 5, 10 & 21 DMAs - weekly moving averages fall - modest bearish setup
• The 0.6170 2022 low holds - break would target 0.5980 April 2020 base
• Yesterday's 0.6302 high and Dec 16 0.6382 top are the first resistance
Andy
(Andrew Spencer is a Reuters market analyst. The views expressed are his own.)