The Australian dollar rallied today despite extremely poor domestic macroeconomic data. The possible reason for that was the fact that the market sentiment stabilized as traders priced in the trade war between the United States and China. Yet the currency was unable to hold onto gains and is currently trading below the opening level.
The Australian Bureau of Statistic reported that the seasonally adjusted number of building approvals dropped 4.7% in April from March after tumbling 13.4% in the previous month. Analysts had expected a small increase by 0.1%.
Private capital expenditure fell 1.7% in the March quarter from the previous three months instead of rising 0.5% as analysts had predicted. The indicator rose 1.3% in the previous quarter.
Housing Industry Association reported that New Home Sales tanked 11.8% in April after falling just 0.1% in the previous month. That was the biggest drop since September 2005.
AUD/USD slipped from 0.6916 to 0.6911 by 18:47 GMT today after rising to the daily high of 0.6936 earlier. EUR/AUD declined from 1.6092 to 1.6050 intraday but bounced to 1.6112 later. AUD/JPY was up from 75.79 to 76.15 intraday before retreating to 75.69.
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Aussie Rallies Despite Poor Domestic Data, Unable to Keep Gains
