Global macro overview for 07/01/2016:

The building approvals data was released last night in Australia showing the biggest decline in more than three years. Market participants had expected a smaller decrease in permits of 2.8% this month against 3.3% last month, but the plunge amounted to 12,7%. To make things worse, on an annual basis, approvals dropped 8.3% in November, following a 12.3% advance a month earlier. This kind of data should be worrying mainly because the Australian house market has enjoyed a solid run over the last few years, especially ultra-low interest rates have been boosting the demand for housing. After the change in the RBA policy and possible rate hike in the near future, the activity in the housing market is starting to fade.

The AUD/USD pair is trading just above the important support at the level of 0.7015. The next important resistance is seen at the level of 0.7079.