AUD/USD extends losses as Australia building permits drop 9.7% in July

• AUD/USD is losing altitude in response to dismal Australian building permits data. 
• Aussie building permits tanked 9.7% in July and private sector credit growth moderated. 

The already weak AUD/USD is extending losses due to horribly weak Australian housing data released at 01:30 GMT.

Australia's building permits fell by 9.7% month-on-month in July, as opposed to the expected reading of 0.0%. The approvals had dropped by 1.2% in June. 

The annualized reading came in at 28.5%, having dropped by 25.6% in the preceding month. Meanwhile, the annualized private sector credit growth moderated to 3.1% in July, after having risen by 3.3% in June. 

The dismal housing data is AUD-negative. Moreover, it indicates the recent easing by the Reserve Bank of Australia (RBA) is yet to flow through to building approvals. 

The central bank has eased policy twice since June to a record low of 1% and the market expects another rate cut before the year-end and one more in February. 

As of writing, the AUD/USD is trading at session lows near 0.6706, having dropped close to 10 pips on the release of the dismal building approvals figure. 

Pivot points