AUD/USD down but not out after mixed data bag

• AUD/USD trims gains but holds above the accelerated trendline.
• Aussie Import price index bettered estimated, but building permits tanked.
• Bearish outside day candle indicates trendline could be breached.

AUD/USD turned lower from the session high of 0.8067 and was last seen trading at 0.8049, courtesy of weaker-than-expected housing data.

The data released in Australia today showed the building permits tanked 20 percent month-on-month in December, beating the estimated drop of 8 percent by a big margin.

Meanwhile, the fourth quarter import price index came in at 2.0 percent quarter-on-quarter, beating the estimated drop of 0.8 percent. It shows the economy imported inflation at a faster rate in the fourth quarter. However, the upbeat inflation number has not put a bid under the Aussie dollar.

That said, the currency pair is still holding above the key rising trendline, although the previous day's bearish outside day candle, coupled with an overbought RSI indicates the accelerated trendline (drawn from the Dec. 11 low and Jan. 10 low) could be breached soon.

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "despite the retracement and the short-term negative bias, the pair holds above the 0.800 figure, a line in the sand at this point, as bulls may hesitate if the pair breaks the level. Technical readings in the 4 hours chart favor some further slides ahead, as indicators head sharply lower below their mid-lines, as the price fell below its 20 SMA.

Support levels: 0.8000 0.7965 0.7920

Resistance levels: 0.8070 0.8100 0.8135