Investing.com - Following a slack performance against its U.S. rival last week, the Australian dollar is looking to rebound this week. The Aussie dollar is doing just that, buoyed by some recently released economic data points.
In Asian trading Monday, AUD/USD climbed 0.15% to 1.0426. That gain is close to wiping out last week’s loss of 0.16% for the pair. The pair is likely to find support at 1.0360, Friday’s low and resistance at 1.0474, Wednesday’s high.
The Aussie dollar rose against the greenback after a report showed Australian approvals to build new homes fell more-than-expected last week. Earlier today, a report released by Australian Bureau of Statistics said that approvals to build new homes fell by a seasonally adjusted 4.4%, from 3.4% in the prior month. The prior months number was revised up from 2.9%. Analysts had expected Australian Building Approvals to fall to 1.0%.
The Aussie dollar may have been buoyed by some decent economic news out of China, Australia’s largest trading partner. On Sunday, the National Bureau of Statistics and China Federation of Logistics & Purchasing said China’s non-manufacturing Purchasing Managers’ Index climbed to 56.2 in January from 56.1 in December. Readings above 50 indicate expansion.
Traders will now turn their attention to Reserve Bank of Australia’s meeting, scheduled for Tuesday. While odds appear low that the central bank will cut rate interest rates at this meeting, traders have not entirely ruled out the possibility and it is widely expected that if RBA does not cut rates at this meeting, it is only a matter of time before it does so. Australia’s benchmark interest rate is currently 3%, one of the highest in the developed world.
Elsewhere, AUD/JPY gained 0.09% to 96.67 while EUR/AUD slid 0.26% to 1.3075. AUD/NZD climbed 0.11% to 1.2326.
In Asian trading Monday, AUD/USD climbed 0.15% to 1.0426. That gain is close to wiping out last week’s loss of 0.16% for the pair. The pair is likely to find support at 1.0360, Friday’s low and resistance at 1.0474, Wednesday’s high.
The Aussie dollar rose against the greenback after a report showed Australian approvals to build new homes fell more-than-expected last week. Earlier today, a report released by Australian Bureau of Statistics said that approvals to build new homes fell by a seasonally adjusted 4.4%, from 3.4% in the prior month. The prior months number was revised up from 2.9%. Analysts had expected Australian Building Approvals to fall to 1.0%.
The Aussie dollar may have been buoyed by some decent economic news out of China, Australia’s largest trading partner. On Sunday, the National Bureau of Statistics and China Federation of Logistics & Purchasing said China’s non-manufacturing Purchasing Managers’ Index climbed to 56.2 in January from 56.1 in December. Readings above 50 indicate expansion.
Traders will now turn their attention to Reserve Bank of Australia’s meeting, scheduled for Tuesday. While odds appear low that the central bank will cut rate interest rates at this meeting, traders have not entirely ruled out the possibility and it is widely expected that if RBA does not cut rates at this meeting, it is only a matter of time before it does so. Australia’s benchmark interest rate is currently 3%, one of the highest in the developed world.
Elsewhere, AUD/JPY gained 0.09% to 96.67 while EUR/AUD slid 0.26% to 1.3075. AUD/NZD climbed 0.11% to 1.2326.